Apply for a mortgage without savings

mortgage without savings

The initial investment to buy a house comes from savings, but what if you don't have enough? We explain what formulas you can use to request a mortgage without savings.

To be able to face the purchase of a home, you must have saved at least 20% of the final price . This is an economic support that not everyone has been able to secure, since the economic conditions after the crisis have not been the most favorable for potential savings in the United States.

One of the big questions that many people with financial solvency ask themselves is: can you buy a flat without savings? - that is to say: without the sufficient initial capital required by the banks. There are some formulas that can allow us to buy a home without having the economic cushion of savings and in this article we will explain some of them.

How to buy an apartment without savings?

The days of sub-prime mortgages are over. These mortgages became tremendously popular in the United States and eventually reached the United States, as they allowed access to the purchase of a home by individuals who had not met the solvency requirements to access a current mortgage.

Due to the lack of solvency of these people, what began as a small economic turbulence in 2007, turned into a tsunami that devastated the North American mortgage system first and later worldwide. The rest is history.

Times have changed and banks are giving mortgages again, although the requirements are much tougher now: no bank is going to finance a 100% mortgage operation. There are some ways to get around the limitation, one of them is the double mortgage guarantee .

What is the double mortgage guarantee?

The double mortgage guarantee allows us to make two mortgages simultaneously. The first is the mortgage for 80% of the value of the home that we want to acquire, as we normally would. The second would cover 20% of the remaining value and we could achieve it from a mortgage on the value of a property.

In this case, the most common is the parents' home. As you may have already assumed, the main drawback of this way of obtaining a mortgage without savings is that, if we do not have a home and, the most important, that its owner agrees to mortgage it, we will not be able to get the loan.

Mortgage without entry?

Here comes the second option to apply for a mortgage without savings, somewhat more expensive than the double mortgage. It is about requesting, on the one hand, the mortgage for 80% of the value of the house we want to buy and, on the other, the loan for 20% of the missing value . This method is more accessible to many people, but it carries a risk: the final value of that 20% is much higher because of interest. Remember that a mortgage will always have lower interest rates and longer repayment terms than a personal loan. On the other hand, you must demonstrate sufficient solvency to face the repayment since the personal loan has shorter repayment terms.

We recommend that you consult the installment loans that you can access and compare which are the best, the most advantageous or those that allow you to request a higher amount, as well as the maximum terms and amounts that you will pay each month. Remember that to apply for a loan online you do not have to change banks.

Last update: 6 November 2020
Ranking created based on the most frequently granted loans
1 - 48 months
term
$ 50 - $ 7,500
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
6 - 84 months
term
$ 1,000 - $ 50,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
6 - 60 months
term
$ 500 - $ 10,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
1 - 60 months
? Even from 7 days
term
$ 50 - $ 9,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
2 - 36 months
term
$ 100 - $ 5,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
6 - 96 months
term
$ 1,000 - $ 50,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
1 - 48 months
term
$ 50 - $ 5,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "


To forecast the total cost of your mortgage, use our simulator that allows you to calculate exact installments of your mortgage.

Alternative for young people

The last option that we want to explain to you is that of the state endorsement, clearly directed towards young people.

This group is the one that has the most difficulties in accessing a home, even as a couple many young people cannot emancipate themselves because of the problems of requesting a mortgage without savings . To alleviate this situation there is a state guarantee. It is an extension of mortgage financing where it goes from 80% to 95% for certain buyers who meet a series of specific requirements, for example, job security and that the amount of the mortgage does not exceed in any case a third of total revenue.

The 15% additional financing between 80% and 95% maximum, is borne by the State. That is, this section of the mortgage loan will be returned through the bank to the State. It is, then, a social mortgage for people who, due to their job position and training, aspire to have a stable job situation but who, due to age or the economic crisis, have not been able to have enough savings.

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