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Q. What are the current rates for zero down, NOO mortgages?
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You can go from website to website looking for the answer to this question, if you want. But, you will not find one.
That's because the wholesale mortgage lenders and investors who package and provide these programs, do not work
off a "daily or current, zero down, interest only rate". Instead, they look at a variety of factors about the individual borrower to determine an interest rate. There are some basic guidelines a borrower needs to satisfy to be a candidate for an NOO, zero down loan. There is a minimum, midscore FICO requirment. And, there's usually a maximum percentage allowed for debt-to-income ratios. But, there can even be exceptions made on these two, crucial guidelines. |
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A few other factors considered are... how a borrower documents income, if at all... the type of property being purchased...
where the property is located... other investment properties, if any, owned by the borrower... and so on. Not all lenders weigh the importance of these factors equally. |
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Q. Isn't 100%, non-owner occupied financing expensive?
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The answer to this question can be very subjective. It's probably a good idea to keep this point in mind... "you can't have
it all." Compared to certain other types of mortgage loans, no money down loans on investment property may be an expensive proposition. However, it needs to be understood and truly appreciated that this type of loan is quite risky
for a lender to make.
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There could be as many as 100 lenders and investors who make these types of loans on owner-occupied properties.
There aren't nearly that many doing these loans on NOOs or non-owner occupied properties... perhaps there's only a half-dozen who have it in their regular list of offerings. |
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Of course, interest rates are going to be higher no matter how good your credit is. But, outside of higher rates, the costs
of getting a loan like this done are not much different than they are on an owner-occupied property... at least they shouldn't be. |
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It's simply the way lenders and investors work. For the most part, there really are no "cut and dry" answers to be found.
The best way to "know" what you might be getting on a zero down, NOO loan is to go through the simple process of getting
preapproved for one. In fact, you should gain some insight into this process for any type of mortgage you want. Here's why... before any service, broker or consultant like Mortgage Match (whether you find them through the internet or your best friend) can provide you with the complete picture of your loan, all lenders and investors require two things to be done...
(1) pull a tri-merged credit report, and (2) take the standard 1003, uniform residential loan application. Only after we've
completed this process with the borrower, and the lender/investor then reviews the information acquired from these two steps, will they outline the terms and requirements of the loan they're willing to offer. At this point, if an offer is provided,
the borrower is essentially "preapproved" for the loan at the rate and terms outlined. So, with preapproval, you know what
you're getting. |
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Q. Why is it so difficult to "shop" for this type of loan... and to know what's out there?
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While this is particularly true for zero down, NOO loans, the same process holds for any and all other types of mortgage
loans as well. Preapproval can usually be completed in 24-hours, should always be free, and require no obligation on the borrower's part to proceed any further past preapproval. |
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Q. What are the basic guidelines for getting a NOO, 100% loan with interest only payments?
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It's possible to qualify for this loan with a midscore as low as 620. However, to get closer to being a "slam dunk"
for such a loan your midscore should be 680 or higher. |
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The issue of DTI, or Debt-To-Income ratio, is not as easy to answer. However, chances are if your present DTI is 55%
or higher, you will probably have a tough time meeting the DTI maximum for a zero down, investment property loan. |
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Q. I've read that getting a 100% NOO loan closed and funded is difficult. Is this true?
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As long as you get preapproved, along with appropriate appraisal for the property you're buying, there should not be a
problem. However, the follow through on this type of loan requires a seasoned and experienced loan consultant to get it done. If there's a "weak link" in the process, it would be in working with an inexperienced loan consultant, officer or broker who lacks the skills and knowledge to close these types of loans. These calibre of professionals are not everywhere, and certainly are not common. |
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If you have some cash to work with, and can sustain a lower LTV than 100%, then the qualifying guidelines are less rigid
starting with a lower FICO score requirement. In fact, the more money you have to put down, the lower the FICO score requirement will be. And, the lower your interest rate will be. |
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Q. What types of property can be financed with a zero down, NOO loan, or other high LTV loan?
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Generally speaking, SFRs, condos and 1-4 unit properties can be financed. Some lenders may make exceptions for
other types of properties. Overall, SFRs are usually the easiest to finance. And in some cases, condos and multi-unit properties may be approved with higher rates than those that are available for SFRs. |
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Q. Is there a limit to the number of properties I can own and finance with this type of loan?
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Not really, but because some lenders do place restrictions on the number (let's say up to 3), your selection of lenders
to work with... shrinks; thereby potentially making your loan goals harder to achieve... due the fact that you do have fewer
lenders as resources. |
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Q. Are there prepayment penalities on NOO, second home and investment property loans?
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There can be prepayment penalities, and you can also elect not to have a prepayment penalty. The issue of prepayment
penalties works like this... if a borrower agrees to a prepayment penalty then the interest rate will be lower. The longer the time frame allowed for a prepayment penalty (usually up to 3 years) the lower the interest rate will be. If a borrower elects not to have a penalty, then there will be a higher interest rate imposed. Prepayment penalities do not need to sound as nasty to a borrower or investor as they might. There are basically two, different prepay penalties... "hard" and "soft". Hard is the tougher one to deal with... a soft prepay penalty means you cannot refinance the property without being liable for a penalty. But, you can sell the property at any time, and not endure a penalty for early pay off. Hard means the property cannot be sold or refinanced without paying a penalty. |
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All of the above explanation is true for most other mortgage loans as well... not just NOO, second home or investment
property loans. |
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For fast answers on NOO, zero down, interest only loans,
and other high LTV mortgages for Non-Owner Occupied (NOO),
second homes and investment property, purchase and refinance mortgages... in all 50 states. |
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...for fast, hassle-free, NOO, zero down, interest only loans.
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People are saying...
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"In hindsight, I can see that I could
not go wrong with Mortgage Match. Thank you so much for helping to make me and my family's dreams come true. I don't know that anyone else could have." ...Tibby Mendez, El Paso, Texas |
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"Refinancing my home in the financial
straits I was suffering was a godsend. A great big thanks for helping me get my life back!"... Gloria Katy, Spokane, Washington |
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"I am most impressed with your
honesty... and always giving it to me straight with no BS... thanks to Wayne, getting my mortgage was a painless experience."... Ralph Moore, Hagerstown, Maryland |
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"You are just as
advertised. In fact, even better. Thanks for all your help!"... Bonita Welles, Boca Raton, Florida |
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"Thanks for working as hard as you did to get us approved. I know it was
anything but easy. We will always be grateful and your supporters." Glenn and Jean Wilson, Newport Beach, California |
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Q.- Why should I use Mortgage Match to obtain a NOO, zero down, interest only loan?
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Mortgage Match offers selection, experience and aggressive customer service. Mortgage Match features the largest lender
database available anywhere. This database includes the country's largest banks and savings & loans, wholesale lenders and investors, and national and regional specialty niche lenders. Our loan consultants are all at the Senior level... richly experienced and some of the most sought after professionals in the mortgage field. They know what it takes to get loans done. Finally, Mortgage Match pledges to always go the extra mile to get you approved for the loan you want... and the best loan available for your borrowing objectives. Mortgage Match has happy, grateful and satisfied mortgage clients all over the country for virtually every type of loan available... let us help you get the loan or the home you want. Get started here. |
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Q.- Can I get an NOO, 100% loan without PMI?
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Yes, you can get an NOO, interest only loan without PMI. At Mortgage Match, the vast majority of lenders and investors we
work with do NOT require PMI. We always try to avoid using programs which require PMI. Only when a borrower is severely credit challenged, and it's their only option to get approved, do we even suggest a lender with PMI requirements. PMI (Private Mortgage Insurance) is insurance you pay for, to insure the lender against your defaulting on the loan. It can add considerable extra money to your monthly mortgage payment. Obviously, it's an extra cost we want to avoid. |
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FAQ's on NOO, Zero Down, Interest Only Mortgage Loans.
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People are asking...
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What are the current rates for zero down, NOO loans?
Why is it so difficult to "shop" for this kind of loan... and know what's out there?
Isn't 100%, non-owner occupied financing expensive?
What are the basic guidelines for getting a NOO, 100% loan with interest only payments?
I've read that getting a 100% NOO loan closed and funded is difficult. Is this true?
What types of property can be financed with a zero down, NOO loan, or other high LTV loan?
Is there a limit to the number of properties I can own and finance with this type of loan?
Are there prepayment penalities on NOO, second home and investment property loans?
Why should I use Mortgage Match to obtain an NOO, zero down, interest only loan?
Can I get an NOO, 100% loan without PMI?
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Please note: some of the issues pertaining to zero down interest only loans for owner-occupied properties apply to NOO properties
as well... for FAQs on these loans click here. |
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Please also see...
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