Back to Blog

How to purchase a home with no money down.

General Benjamin Garcia 24 Jun

How to purchase a home with no money down. 

Many people dream of home ownership but don’t pursue that dream because they do not have the required down payment. If this sounds like you, there is good news. There are programs that some lenders have available that will allow qualified home buyers to purchase a home with no money down.

These programs, called “Flex Down Payment programs”, are available to home buyers who have established an excellent credit history but have not yet accumulated the required down payment needed to qualify for an insured high ratio loan to value mortgage.

For a program like this, the lender will allow you to borrow the down payment needed in order to qualify for an insured high ratio loan to value mortgage. This means is you will have two loans, the mortgage loan and the down payment loan and you must be able to afford both loans in order to qualify. The down payment can be borrowed from any source that is arm’s length to the purchase or sale transaction, including personal loans, lines of credit or credit cards. Loan repayments will be included in the lender’s debt service calculations.

In order to qualify, here are some of the basic requirements you must have;

  1. A job with steady income. You should be employed on your current job for at least 3 months and have worked in the same field at least two years.
  2. A credit score of 650 or greater.
  3. Your debt service ratios must fall inside the required lender guidelines. This means you must be able to afford the monthly mortgage payments as well as the property tax, heating cost, condo fees (if applicable) and any other debt payments you may have without risking falling behind on any of them. In order to determine if you can afford these payments, most lenders have a debt service ratio guideline they use to calculate the maximum payments you can afford based on your current income and debt levels.

If you meet the above criteria and are paying rent, you should look into swapping your rent payment for a mortgage payment and own your home.

To start the application process, please contact me today.

Benjamin Garcia, B.Com 

Dominion Lending Centres Maximal Mortgages 

Call or Text: 780-240-4937 

 Email: bgarcia@dominionlending.ca 

Webpage: www.garciamortgages.ca