Are you thinking of buying a real property in Mumbai but not willing to pay the down payment? Prior to the recession, it was easy buying real estate property with no down payment. However, the mortgage crisis and financial crisis recession brought with it shook up the system and tightened the credit requirements. In general, a 20% down payment on property to be purchased is usually the requirement whereas the rest of the amount can be borrowed by the lending bank as home loan. Now that the period is over, zero-down payment loans are again on offer.
Credit Score and Interest Rate
Before asking for a home loan from any lending bank, you should calculate your total Real Estate Property value using any of the commercial property valuation methods such as Sales Comparison, Market Approach, Income Capitalization Approach or the Cost Approach. A realtor can help you with this. While it is not easy to get a real estate in Mumbai without any down payment, if you show a proof of adequate income and a good credit score, things might turn positive for you. Also, be ready to pay a high interest rate on such type of loans. Generally, this mortgage rate makes the life of loan givers easier since you have opted for a no-down payment house buying option. You might even have to purchase private mortgage insurance.
Another creative way of avoiding down payment is by getting a gift from a close family or friend or by participating in local housing programs. These programs allow on to use the ‘sweat equity’ to pay for your home.
Certain Government programs need you to qualify to provide you with an avenue to buy real estate property in India without down payment. Some programs are available to military veterans and their surviving spouses to buy a house without a down payment. Again, depending on your credit situation and income, you might be eligible for such programs.
Although purchasing a Real Estate property might be difficult without any down payment, it is not entirely impossible. You can contact your realtor who can give you more ideas about how to reach a median.
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