(CNN)– Zero-down mortgages are making a comeback. One of the largest mortgage lenders in the U.S. is now offering a 0% down payment offer.
The new program is from United Wholesale Mortgage.
Homebuyers who qualify won’t need to put down an upfront down payment, instead it allows buyers to pay for 97% of the home’s value with a first mortgage.
Then they would provide the remaining 3% up to 15 thousand dollars in the form of a second mortgage.
The second mortgage won’t accrue interest but it will need to be paid back in full.
That would happen when the home is sold, the mortgage is paid off or if the owner refinances.
The mortgages are only open to first-time homebuyers and those making no more than 80% of the area’s median income.