Seller Carryback for Zero Down.

If you have little money and poor credit, it's still possible to buy either an owner-occupied or non-owner-occupied home by using the "seller carryback" strategy. This is a strategy which is more commonplace in the buying and selling of real estate than many people realize.

If you presently have no option for buying a home other than a zero down mortgage, you may have already discovered you're not able to qualify for a zero down mortgage, because your midscore FICO is too low. Usually, a FICO score under the 570 to 580 range will prevent a borrower from qualifying for most lender's zero down or no down payment programs.

However, the vast majority of mortgage lenders will accept FICO midscores down to 500 for less than 100% financing. Ordinarily, a borrower would need to have a downpayment to overcome a lower FICO score. And, this downpayment would need to be large enough to bring down the Loan-To-Value (LTV) ratio to 90% or less... meaning a borrower who need a downpayment of 10% or more.

Using the "seller carryback" strategy though, a borrower does NOT need a downpayment. In a seller carryback transaction, the seller agrees to a carry a second mortgage or note for a portion or a percentage of the purchase price. A small number of mortgage lenders will look at this carryback as instant equity for the buyer, and thereby view the mortgage as one having an LTV of less than 100%... even though the borrower is not bringing a downpayment to the deal.

To enlist the seller carryback strategy, there are two steps. First, a borrower needs to be preapproved for a new mortgage. By getting preapproved, the borrower will learn how big or how much of a seller carryback will be necessary to obtain a mortgage on a "zero down" basis.

Next, after preapproval, the borrower can then set out to locate a seller who's willing to accommodate a seller carryback enabling the borrower to buy on a "zero down" basis. Locating such a seller is not as hard as it might sound. It's actually more complicated working with a mortgage lender who will offer a "zero down" mortgage on this basis. At Mortgage Match, arranging seller carryback mortgages for zero down deals is routine. Mortgage Match has the lender relationships to make these deals work. So, if you're a borrower with poor credit, who can't qualify for a traditional zero down mortgage right now, don't give up your dream of owning your own home. Get preapproved and follow the lead of a Mortgage Match Senior Loan Consultant to be on your way to buying a home with zero down. Get preapproved by clicking here.