| When you take a loan to buy a house, a down | | | | discontinuation of PMI after a couple of years, or when |
| payment that may vary from 3% to 20% is normally | | | | the principal amount is reduced by 20%. |
| required. But there are ways to purchase a property | | | | In many cases a second mortgage of the property, |
| without a down payment. A number of players are | | | | which is even available to people with bad credit, can |
| present in this field. These include brokers and lenders. | | | | possibly raise enough money for down payment. |
| Different plans are available for the prospective | | | | Generally speaking, the more borrowing, the more the |
| homebuyer to choose from. | | | | interest and the repayment installments. But for home |
| Some of the schemes offer loans amounting to 100% | | | | loans, interest and some of the expenses may be |
| or more of the value of the property. In most such | | | | tax-deductible. The important point is the repayment |
| cases a high FICO score is required; this is a credit | | | | capacity. |
| score system invented by Fair Isaac & Co. Such | | | | It is possible to sell the property with the liability on. This |
| a loan takes care of the down payment. The range of | | | | may, on occasions, generate enough funds to meet |
| the loan could be from small amounts like $50,000 to a | | | | the down payment for a new home. In instances |
| million or even more. | | | | where the lender goes bankrupt, the obligation to |
| One point to be borne in mind is that the monthly | | | | repay would remain. |
| repayment depends on the amount of the down | | | | Free consultancy and support are available from the |
| payment. Also, if the down payment is less than 20%, | | | | U.S. Department of Housing & Urban |
| usually the lender insists on the buyer taking a Private | | | | Development (HUD). |
| Mortgage Insurance (PMI). Most financiers allow | | | | |