Down payment alternatives

There are two special GMAC mortgage programs designed to help borrowers who prefer not to make a down payment. One has been developed to respond to the needs of borrowers who qualify for FHA loans; the other has been created for borrowers who qualify for conventional loans. The fundamentals of these two GMAC mortgage programs are very similar.

Essentially, these GMAC mortgages were designed for borrowers who have enough money to make monthly payments, but can’t, for whatever reason, make the down payment or cover the closing costs.

There are many reasons that a borrower might not want to make a down payment. For some families, it is just too difficult to save enough money. Down payments can be wildly expensive; many lenders prefer twenty percent of the cost of the house upfront. Similarly, closing costs simply do not fit into the budgets of families with modest incomes.

These GMAC mortgages are also appropriate for families who have saved enough money for a down payment, but would prefer to spend the savings in other ways. Some borrowers might want to use the money they earmarked for the down payment for furniture, carpeting, or any of the expenses that come up when you are settling into a new house.

The amount of funding that is available through these programs depends on state regulations and your personal finances. If you are interested in buying a house without making a down payment, contact a GMAC representative for more details. They have extensive experience with matching borrowers with a tailored mortgage solution.