Editors Note: Due to the mortgage and credit crunch, 100% investment property loans are no longer be available. If you’re in need of a mortgage in Denver, CO contact us to discuss your mortgage options.

Can I still get 100% investment loans? The answer is yes. Although many lenders are getting rid of the programs, we as mortgage brokers have access to hundreds of lenders, so we keep all the best programs. Contact us now to inquire.

100% financing on investment properties can be done up to 4 units. However it is in most cases easier to finance a 2 unit with 100% financing. The rates are generally slightly lower on the 2 family as well.

You can expect higher than normal interest rates on loans for 100% financing on investment properties. Even with the best credit, the bank is taking on additional risk because they are financing all the value of the home, and if times get rough most people will skip the payment on a second or investment home rather than miss a payment on their primary residence.

Purchasing investment property can be a great investment and if done properly can make you quite a bit of money. This is why it is very important to find an honest, educated and hardworking mortgage broker to become familiar with you and your situation and handle your entire home financing needs. There are many people out there who are not even aware that 100% financing on a rental property is available. By choosing the right mortgage program for your rental property(ies) you will be able to maximize monthly cash flow and invest into your future as well.

Editors Note: Due to the mortgage and credit crunch, 100% financing has been eliminated. If you’re in need of a Denver Financing contact us to discuss your mortgage options.

100% Financing allows you to buy a home with no money down.

100% home loans are widely available nowadays. Not only do government loan programs such as FHA and VA offer Zero Down mortgages, conventional loan programs with No Money Down feature are also offered by many traditional mortgage banks.

100% financing can be a great loan even for those who do have access to a down payment. Down payment funds can many times can be better kept aside for things such as other investment opportunities, a reserve account for emergencies and future home improvements.

Many people wait to receive income tax money, a big bonus at the end of the year, or a large gift from an immediate family member before they begin looking to buy a new home. A 100% zero down loan eliminates this waiting period and allows you to obtain the home you want now. Especially now with the uncertainty of interest rates and where they will be in the next 6-12 months. Now is the time to begin looking for your dream home. Waiting may cause you to accept a higher interest rate because the rates have increased during the time you waited. Even if you do have money available for a down payment it is always a good idea to keep some money put away for a rainy day or for an old furnace that needs to be fixed, an old water heater that needs to be replaced or some other basic home repairs. Also, you may want to have some money left to help pay for some of the costs associated with buying a new home, such as buying window treatments, decorating, new furniture, etc…

Almost all lenders allow this now and it can even be done with poor credit. Down to a 560 currently, although the interest rate will be reflective of your credit score!

By using 100% home financing option to control your up-front expenses by reducing your down payment to as little as zero without having to pay mortgage insurance. Most commonly know as 80/20 combo mortgages.

Besides being commonly known as 80/20 combo mortgages. 100% Financing can also be called NO MONEY DOWN or ZERO DOWN.

With 100% or Zero Down home loans, a home buyer is able to minimize his or her out of pocket expenses allowing them to purchase their dream home much sooner. In addition this allows more cash for the family to use for other home necessities.

You can now get 100% financing for the full purchase price of a home a single loan. In recent years, loan products have been developed to provide home buyers with the opportunity to purchase a home without a down payment. For many years, the minimum down payment required was 5% of the purchase price for a home. Then, special first-time home buyer programs came into existence, which usually required a 3% down payment. Now you can buy a home without a down payment.

100% Financing programs are off erred by lenders in markets where property values are stable or increasing. In markets that show decreasing property values, lender are much less likely to offer 100% Financing programs.

Often you can still do 100% Even with poor credit with a seller carry back. The lender will finance 80% and the seller will finance the remaining 20% Some lenders will allow this even with a credit score as low as 540!

Writing closing costs into the Purchase and Sale contract is called adding “seller concessions”. Many lenders will allow up to 6% of the sale price of the home to be paid in seller concessions.

If you are considering purchasing a property with no money down, please contact your local mortgage agent before you write your offer.

One effective way to get a win-win is to help someone with no down payment money on a For Sale By Owner home. The seller is more likely to agree to seller concessions when they know they are saving the realtor commission. If you find a 100% loan for the buyer and the seller will agree to 6% seller concessions, the broker can get a fair commission for playing real estate agent and directing the parties to a good title company or attorney to help with contracts and closing. This is often considerably cheaper than FHA because FHA has the mandatory up front PMI of 1.5% although the interest rate may be a little higher than the FHA rate. You might also ask your mortgage broker about companies that offer to have the PMI added to the interest rate where it is tax deductible, or have them do an 80/20 loan to avoid MI altogether.

100% financing does not include your closing costs. Your Real Estate Agent may write the closing costs into the contract for the seller to pay so that you may not be required to use any of your funds to purchase your home.

If your credit score is below 700, another excellent way to avoid PMI Private Mortgage Insurance on a 100% purchase is to contact us and enquire about a subprime 100% purchase mortgage loan.

You will still have to put down earnest money on the home you plan to purchase. If you obtain 100% financing, the earnest money will be used toward your closing costs.

Borrowers with strong credit scores will have more 100% financing programs to choose from with better rates than a borrower with a lower score.

Although more difficult to qualify for, there are No Money Down programs for investment properties as well. The property has to be residential, up to 4 units. As an investor pay close attention to your cash flow on any property as 100% financing often pushes expenses beyond income.

Many people today are opting for 100% financing, or zero down programs. This puts you at an advantage if you already have cash on hand. While it would seem logical to put money down towards your purchase, you may want to consider your situation after the loan closes. Will you have enough cash left over?

Here is a list of 10 tips to building and maintaining wealth, as well as the 10 most common myths about home equity, and the reality of each myth.1. Avoid the $25,000 mistake that ensnares millions of Americans. Myth: The best way to pay off a home early is to pay extra principal on your mortgages. Reality: No method of applying extra principal payments to your mortgages is the wisest or most cost-effective way of paying off your house. Strategy: Establish a liquid side fund to accumulate the funds required to pay off your mortgage, maintain flexibility, achieve substantial tax savings and accumulate excess cash.

The equity you have in your home can be a powerful tool in managing your overall financial situation. Your equity, the value of your home minus your existing mortgage, can serve as collateral for additional borrowing. While there are some risks with this strategy (as with any borrowing), home equity loans usually offer the attractions of lower rates, longer period to pay back, convenience and often tax benefits.

4. The return on equity is always zero no matter where your property is located. Myth: Home equity has a rate of return. Reality: Equity grows as a function of real estate appreciation and a mortgage reduction; however, equity has no rate of return. Strategy: Separate as much equity from your house as feasible in order to allow idle dollars to earn a rate of return.

9. Strategically refinance your home as often as feasible to increase your net worth. Myth: Equity in your home enhances your net worth. Reality: Equity in your home does not enhance your net worth at all. Separated from your home, however, it has the ability to dramatically enhance your net worth over time. Strategy: Set the stage to substantially increase your net worth. Refinance your home as often as feasible to separate equity and accelerate the process of accumulating the resources to cover all your debts.

10. Keep your mortgage balance high to sell your home more quickly and for a higher price. Myth: The amount of equity you have in your home has no bearing on how marketable it is. Reality: Your home may likely sell much more quickly and for a higher price if it has a high mortgage balance (low equity)�rather than a low mortgage or no mortgage balance (high equity)�especially in soft real estate markets. Strategy: Always maintain as high a mortgage with flexibility on your home as feasible to keep it marketable at the highest possible price should you want to sell the property.�

6. Use debt for positive leverage. Myth: Any and all debt is undesirable. Reality: Some debt, when managed wisely, can be desirable. Strategy: Use debt wisely as a positive lever for equity management purposes, conserving and compounding equity rather than consuming it.

2. Avoid expensive risks. Position yourself to act instead of reacting to market conditions you have no control over. Myth: Home equity is liquid. Reality: When you need it most, you may not have it. Home equity is usually not-liquid. Strategy: Separate as much equity from your property as is feasible, positioning it in financial instruments that will maintain liquidity in the event of emergencies and conservative investment opportunities.

5. Make Uncle Sam your best partner. Mortgage interest is your friend, not your foe. Myth: Mortgage interest is an expense that should be eliminated as soon as possible. Reality: Eliminating mortgage interest expense through traditional methods eliminates one of your best partners in accumulating wealth and financial security. Strategy: Use the difference between preferred and non-preferred interest expense to make interest work for you instead of against you.

As you can see there are many ways you can put your equity to work for you. It might be a good idea to check with your online Mortgage Broker to see how you would be able to benefit from some of these strategies.

3. Separate home and equity to increase safety. Real properties with high equity and low mortgages get foreclosed on the soonest. Myth: Home equity is a safe investment. Reality: A home mortgaged to the hilt or totally free and clear provides the greatest safety for the homeowner. Strategy: Separate as much equity from your home as feasible to achieve greater safety of principle and reduce the risk of foreclosure.

7. Understand the cost of not borrowing compare deductible versus non-deductible costs. Myth: lower mortgages, resulting in lower payments, mean lower cost. Reality: If you take opportunity costs into consideration, low mortgage-to-home-value ratios create tremendous hidden costs that increase the time needed to pay off a mortgage. Strategy: Choose to incur deductible employment costs rather than non-deductible opportunity costs, since you have no choice but to incur one or the other.

8. Turbo charge your wealth growth rate by creating homemade wealth. Myth: Borrowing funds at a particular interest rate, then investing them at the same or lower interest rate, holds no potential growth returns. Reality: You can earn a tremendous pro fit regardless of the relative interest rates by positioning your money in a tax favored, interest-compounding investment that earns a rate of return greater than the real net cost of obtaining the money. Strategy: Learn to apply the fundamental principle that highly profitable financial institutions use to accumulate and create wealth arbitrage. Employ equity to earn a rate of return higher than the net cost of separating that equity. By doing so, you will create tremendous wealth and substantially enhance your net worth.

Nearly 6 in every 10 home owners has more home equity than stock, bond, treasury or other securities derived wealth. They key to maximizing one’s wealth is to utilize one’s home equity to invest in asset classes which on average return at a rate higher than the tax-deduction-adjusted interest rate of their mortgage. For example, if you have a 5% ARM your effective interest rate after deductions is roughly 3.75%. You should speak with your tax and investment professionals about finding a strategy which allows you to invest at a rate higher than this, and contact us for advice on how to get you the money to build your financial future.

10 tips for using a mortgage as a financial tool

Here is a list of 10 tips to building and maintaining wealth, as well as the 10 most common myths about home equity, and the reality of each myth.1. Avoid the $25,000 mistake that ensnares millions of Americans. Myth: The best way to pay off a home early is to pay extra principal on your mortgages. Reality: No method of applying extra principal payments to your mortgages is the wisest or most cost-effective way of paying off your house. Strategy: Establish a liquid side fund to accumulate the funds required to pay off your mortgage, maintain flexibility, achieve substantial tax savings and accumulate excess cash.

The equity you have in your home can be a powerful tool in managing your overall financial situation. Your equity, the value of your home minus your existing mortgage, can serve as collateral for additional borrowing. While there are some risks with this strategy (as with any borrowing), home equity loans usually offer the attractions of lower rates, longer period to pay back, convenience and often tax benefits.

4. The return on equity is always zero no matter where your property is located. Myth: Home equity has a rate of return. Reality: Equity grows as a function of real estate appreciation and a mortgage reduction; however, equity has no rate of return. Strategy: Separate as much equity from your house as feasible in order to allow idle dollars to earn a rate of return.

9. Strategically refinance your home as often as feasible to increase your net worth. Myth: Equity in your home enhances your net worth. Reality: Equity in your home does not enhance your net worth at all. Separated from your home, however, it has the ability to dramatically enhance your net worth over time. Strategy: Set the stage to substantially increase your net worth. Refinance your home as often as feasible to separate equity and accelerate the process of accumulating the resources to cover all your debts.

10. Keep your mortgage balance high to sell your home more quickly and for a higher price. Myth: The amount of equity you have in your home has no bearing on how marketable it is. Reality: Your home may likely sell much more quickly and for a higher price if it has a high mortgage balance (low equity)—rather than a low mortgage or no mortgage balance (high equity)—especially in soft real estate markets. Strategy: Always maintain as high a mortgage with flexibility on your home as feasible to keep it marketable at the highest possible price should you want to sell the property.”

6. Use debt for positive leverage. Myth: Any and all debt is undesirable. Reality: Some debt, when managed wisely, can be desirable. Strategy: Use debt wisely as a positive lever for equity management purposes, conserving and compounding equity rather than consuming it.

2. Avoid expensive risks. Position yourself to act instead of reacting to market conditions you have no control over. Myth: Home equity is liquid. Reality: When you need it most, you may not have it. Home equity is usually not-liquid. Strategy: Separate as much equity from your property as is feasible, positioning it in financial instruments that will maintain liquidity in the event of emergencies and conservative investment opportunities.

5. Make Uncle Sam your best partner. Mortgage interest is your friend, not your foe. Myth: Mortgage interest is an expense that should be eliminated as soon as possible. Reality: Eliminating mortgage interest expense through traditional methods eliminates one of your best partners in accumulating wealth and financial security. Strategy: Use the difference between preferred and non-preferred interest expense to make interest work for you instead of against you.

As you can see there are many ways you can put your equity to work for you. It might be a good idea to check with your online Mortgage Broker to see how you would be able to benefit from some of these strategies.

3. Separate home and equity to increase safety. Real properties with high equity and low mortgages get foreclosed on the soonest. Myth: Home equity is a safe investment. Reality: A home mortgaged to the hilt or totally free and clear provides the greatest safety for the homeowner. Strategy: Separate as much equity from your home as feasible to achieve greater safety of principle and reduce the risk of foreclosure.

7. Understand the cost of not borrowing compare deductible versus non-deductible costs. Myth: lower mortgages, resulting in lower payments, mean lower cost. Reality: If you take opportunity costs into consideration, low mortgage-to-home-value ratios create tremendous hidden costs that increase the time needed to pay off a mortgage. Strategy: Choose to incur deductible employment costs rather than non-deductible opportunity costs, since you have no choice but to incur one or the other.

8. Turbo charge your wealth growth rate by creating homemade wealth. Myth: Borrowing funds at a particular interest rate, then investing them at the same or lower interest rate, holds no potential growth returns. Reality: You can earn a tremendous pro fit regardless of the relative interest rates by positioning your money in a tax favored, interest-compounding investment that earns a rate of return greater than the real net cost of obtaining the money. Strategy: Learn to apply the fundamental principle that highly profitable financial institutions use to accumulate and create wealth arbitrage. Employ equity to earn a rate of return higher than the net cost of separating that equity. By doing so, you will create tremendous wealth and substantially enhance your net worth.

Nearly 6 in every 10 home owners has more home equity than stock, bond, treasury or other securities derived wealth. They key to maximizing one’s wealth is to utilize one’s home equity to invest in asset classes which on average return at a rate higher than the tax-deduction-adjusted interest rate of their mortgage. For example, if you have a 5% ARM your effective interest rate after deductions is roughly 3.75%. You should speak with your tax and investment professionals about finding a strategy which allows you to invest at a rate higher than this, and contact us for advice on how to get you the money to build your financial future.

Editors Note: Due to the mortgage crisis, 1% mortgage loans may no longer exist. Visit our home page if you’re in need of a mortgage loan in Denver.

Many mortgage lenders advertise loan programs with rates in the 1 per cent range. We also offer a full variety of these types of loan programs but borrowers must realize that the 1 per cent aspect can be a little misleading. All programs that you see advertised with 1, 2 or even 3 per cent rates these days are payment option programs. These are great programs for certain borrowers but are misunderstood by many.

Exercise caution when following up on advertising that boasts a loan with a 1 percent interest rate. These loans are not for everybody and they are some of the most misunderstood loans available. There are many newer mortgage professionals who are not even fully aware of exactly how these programs work, and they are selling you on the fact that you have a fixed rate and payment of 1% for 5 years. Your minimum payment will usually go up by 7.5% each year. This means that if you have a $1,000/month minimum payment, the next year this payment would go up to $1,075. Also, most likely this minimum payment is still resulting in negative amortization. The 1 percent rate that you are being advertised and told is fixed for 5 years is actually only the basis of your minimum payment required on the loan. Your actual interest rate on the loan will be your margin (which is normally anywhere from 2% up to 4%) plus your index (which can be LIBOR, MTA, COSI, etc…). Therefore, you would actually have a much higher interest rate on your loan than 1%. These types of mortgages will allow you the most flexibility in your monthly payments and can help maximize cash flow, however they are not a good mortgage choice for every borrower. This is one reason to make sure you have an honest, experienced mortgage broker to work with, for all of your mortgage financing.

As long as your mortgage professional explains clearly how your payment works you should be fine. Most people run into trouble with this type of program when it�s not properly explained. There is no way your principle will go down if your payment is based on a 1% rate when your balance is being charged a higher rate.

Often times rates advertised this low are nothing more than a teaser rate. It makes for a nice sign or ad but the fine print tells you that this is an intro rate. Most convert to a normal rate in 30-90 days. Your mortgage professional can explain these type programs to you.

Before you decide to enter into a negative amortization program make sure that your mortgage broker fully explains the program to you and how it works. This type of loan is very useful to some borrowers but is not for everyone.

When you pay an interest rate that is below market average, such as with a pay option loan, you have a negative amortization loan. Basically, you are paying a much higher interest rate, but your payments are based on the low interest rate. The difference in payment is added to you loan balance each month. If you make the minimum payment every month, your balance will increase, and you could end up owing more than your home is worth.