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Hi,
Anybody got any useful info on how to structure the above. I'm trying to put together some tips on no money down deals for myself and to share with others.
Perhaps if we all chip in with some ideas then it will be of benefit to us all.
So.... Lets start.... Who's first ?
FM |
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I'm not aware of many Funky mate.
No money down implies buying well below market value, as no lender will lend to the hilt with no safety net for market jitters / borrower running into personal difficulties.
I'd say they are on deal by deal basis, all reliant on valuations exceeding asking prices.
John |
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Hi Funky and John
I have never really pushed the boat out for finance.
Maybe I am old fashioned, but the only worthwhile return I have found is through saving and investing a large protion of my own equity in a project, and/or doing very hard work to redecorate and renovate a property.
I would be interested in the criteria the lenders require to lend on something with "no money down" - do please let us know.
Bryan |
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Funky Me,
I think the 'No / Low / Negative Money Down Deals' are effectively the same as gifted-deposits though I could be wrong.
Julian |
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It is all about creative financing at the end of the day. These deals exist - its just what you do with them.
Alec |
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Hello again. Thanks for the replies.
I have sourced 89 % financing on BTL and have spoken to a few people about "Cashback" on completion. i.e. 100k property 'bought' for 90k with 10k cashback (Gifted Deposit?). Which is the closest it gets to zero for me.
The criteria - depends much on the lender but usually they need 1.25 of the SVR% as rental income. Some lenders lend on the value of the property and not the purchase price which is another way of doing it I guess.
Has anyone done this ? Was it easy ? were there any pitfalls ?
FM.
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funky me,
gifted deposit is the other way round you value the house at £100k (even though it is only worth £90k) and pay £100k.
the vendor then gives you £10k back. you have had to put no or very little money down as the mortgage company only requires a 10% deposit (ish). This deposit is covered by the cash back.
you have therefore bought a house and not had to put any money in (or very little).
tom |
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Hi Tom,
Errrmm.. Yes you are correct and that is what I meant to say. As opposed to (after re reading it) what I think I actually said. I'm not going for the Plain English Crystal Mark on that post, that's for sure !
Cheers,
FM (Part time stirrer of murky water) |
