Some banks and mortgage companies are now offering conventional loans to non-veterans with no down payment. Zero down home loans are especially popular among baby-boomers who prefer to keep their assets in higher returning investments like stock mutual funds or 401-K plans instead of sinking thousands of dollars into dead equity in their homes.

      It’s not uncommon for credit card interest rates to exceed 14% or even 18% on many of the most popular credit cards. Even home buyers with a solid financial picture can easily amass $5,000 to $10,000 of credit card or other consumer debt with high interest rates before they know it.

      Borrowers with good credit and modest savings are the target market for zero down home loans. Only months ago 100% home loans were very rare (outside of VA or governmental loans) and the interest rates offered by lenders offering 100% loans had rates which were often 2% or more above the prevailing market interest rates. Now it’s possible for home buyers with stable jobs and good credit history can obtain home loans at rates and terms which compare favorably with loans requiring 5%, 10%, or even 20% as a down payment. Some of these revolutionary no downpayment home loans are available with no requirement for mortgage insurance.

       Buyers in this price range are savvy, experienced buyers. They are looking for the largest tax break they can get while keeping all of their assets working. Zero down home loans allow higher income buyers to get the maximum tax break from owning an executive home while keeping their cash in stocks, mutual funds, 401-K programs or other more lucrative investments. It’s not unusual for many of these investments to consistently produce relatively safe returns of 10%, 15%, and some reports of even 20%. 

I’m Getting Great Returns & Don’t Want It To Stop!

            It’s amazing to watch smart people who have worked hard and spent countless hours of research raid or even completely liquidate their portfolio just so they can have enough money for a down payment and closing costs! I can’t tell you how many calls I’ve had at tax time from clients who didn’t realize that they had to pay capital gains taxes on the sale of some of those investments… that’s insult to injury!

            You don’t need too many investment courses to recognize the power of keeping your investment money in place when it’s earning 8%, 10%, 15%, 20% OR MORE!

            Sure, it’s probable that the home you are buying will also increase in value. Generally, over the past few years, property values have clearly increased.

            Look into a dynamic combination…

“Leveraged Real Estate (at below market rates) +

Wealth Generation In Portfolio Growth”.

            When you put the power of this combination together, you may increase your overall wealth more significantly than just hoping your house will go up in value.