Buyer closes with no money down, for less than a rental

Mortgage lender: James Forte Property type: Single-family home in Danbury

Purchase price: $ 285,000 Borrowing amount: $ 285,000 Loan type: 30-year fixed Federal Housing Administration

Rate: 5.000 percent Background: The borrower was an electrical worker. The borrower was a very strong borrower on paper with good credit, job history and debt ratio. But just be- cause you are a good borrower on paper does not mean you have the means for a down payment.

The borrower never dreamed they could actually buy a home because they had virtually no down payment and thought they would only be eligible to rent or that if they could actually buy, it would cost them more money per month.

The borrower was working with a Realtor who suggested a free consultation for purchase with Forte.

The borrowers called Forte with very low expectations and feeling nervous about the process. Forte took the full application and was able to work up a program to purchase with the Federal Housing Administation and no down payment.

Forte’s company, Finance of America, is one of the only lenders in the country with this special 0 percent down program, most lenders require 3.5 percent down.

Forte was also able to get all the closing costs financed into the loan so it was literally only $ 100 out of the borrowers pocket to buy a house.

Forte explained that not only will they save money per month as the total payment with taxes and insurance included was less money than comparable homes for rent, but in addition, it cost less money out of pocket to buy as a rental is typically first month, last month and one or two months security!

The client was able to achieve what he thought was not possible. Moral here is that a very large percentage of people who rent can actually buy for less.