Plattsburgh Mortgage News: No Money Down DOES NOT Mean No Money Needed for Closing

No Money Down DOES NOT Mean No Money Needed for Closing

Late Night Infomercials aside,


No Money Down Home Loan

You’re still going to have to bring some money to the closing table. You may or may not know that there are still NO MONEY DOWN home loans available for some areas under certain circumstances. I wrote a featured post yesterday about some borrowers that were less than truthful with me through the lending process and I ultimately had to deny their application.

One of the comments on that post got me thinking about this. Carla Muss commented in part that “Maybe they thought they didn't need a down-payment because they watched some TV info-mercial at 3:00 AM which suggested otherwise?” and she may be right.

What I want to share though is that there is a loan product that still exists that allows borrower’s to buy a home with no money down. That is; NO MONEY DOWN or 100% FINANCING. It’s true depending on your area and level of income. You may be able to purchase a home with NO DOWN PAYMENT!

That is not the same thing as having to bring no money to the closing table. Even if you are borrowing 100% of the sales price of the home you will still need to bring some money to the table at closing. There are a lot of expenses that go into purchasing a home such as home owner’s insurance, taxes, title & attorney’s fees, and recording fees… etc.

The loan that I am referring to which allows for 100% financing and 6% seller concessions is USDA Rural. We do these loans here at Plattsburgh Mortgage Company and they are actually quite popular outside of the city. You won’t have to bring much to the table at all but you will have to bring something.  The amount that you will have to bring will depend on whether or not the seller agrees to 6% seller concessions and it will also depend on the size of the loan.

The home needs to be in an eligible area and you need to earn the average median income for your area or less to be eligible. There are also bank specific guidelines; our bank in particular can go down to a 620 credit score.

If you apply for one of these loans with us we will do our best to keep the funds that you need to close at a minimum but please be prepared to have to bring something to the closing. Save up at least a month or two worth of your current housing expense and that ought to do it.


Thanks for reading! Comments are always welcome and appreciated!!!

Christopher Ohlsen

37 Boynton Ave

(845) 243-5293 (Office)

(518) 565-0799 (Cell)



Comment balloon 4 commentsChristopher Ohlsen • July 17 2014 10:11AM


Christopher, That is a great post!  These infomercials really don't quite tell everything!

Posted by Tony & Darcy Cannon, The C Team (Aubrey and Associates Realty) almost 5 years ago

Thank you Tony & Darcy! I know, some of those infomercials are quite misleading. "NO MONEY DOWN" or "USE SOMEONE ELSE'S MONEY" ... LOL.  In reality there are No Down Payment loans that exists but they are not witout closing costs (Recording fees and the like).

Posted by Christopher Ohlsen (Credit Werx, LLC.) almost 5 years ago

Over simplify the process and add a couple catchy sound bites... and spin happens. Or just not enough time to elaborate into the details. The house has to be up to snuff too... who pays for that in rural development USDA loans...(all eyes on seller who says don't look at me mr don't have the money buyer)

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) almost 5 years ago

Good Points Andrew. The home does have to be up to snuff. Had one recently in where the pipes busted over the winter and the seller had to fix it. Luckily in that case the seller did not put up a fuss.  We are in the North where it gets cold so the home has to be insulated and have a heat source as well; aside from condition, it needs to be a home that can be lived in year round.

Posted by Christopher Ohlsen (Credit Werx, LLC.) almost 5 years ago