Are zero down loans too good to be true?
I recently noticed that several hard money lenders are advertising zero down loans. The promise of zero down is enticing but is it a smart option? I can tell you without even investigating the specific offers that a zero down loan is riskier for the lender. If a down payment isn’t required, you can be assured that the lender will have other means of reducing their risk. For example, they may charge a much higher interest rate or ask for additional collateral.
What is behind a zero down loan
So what are these lenders really offering when they promote zero down? I reviewed two loan programs to answer this question. The two lenders are Hard Money Sources and Do Hard Money. Both have been actively promoting zero down loan programs. If you are intrigued by the promise of zero down loans, you’ll want to investigate the details thoroughly before signing up. Read my article to see what is really being offered, what the requirements are, and what some possible pitfalls may be.
We offer a variety of hard money loans for real estate investors. If you are looking for fast approval, competitive rates and quick funding, check out our loan programs for Minnesota real estate investors.
