How does the Zero Down Payment Program Work?
This Program has been revised and is now permanent. Under the Zero Down Payment Program, the minimum down payment of 5% of the purchase price or appraised value, whichever is less is funded by the lender and given to the lawyer in trust when the mortgage is advanced. Borrowers must have 1.5% of the purchase amount of their own resources to account for closing costs. Maximum GDSR ~ 32% (Principal + Interest + Property Taxes + Heating Costs must not exceed 32% of Gross Income). Maximum TDSR ~ 40 (Principal + Interest + Property Taxes + Heating Costs + Monthly Obligations including Credit Cards & Loans must not exceed 40% of Gross Income). Minimum loan term is 60 months. The mortgage loan insurance premium is 2.90% of the mortgage amount. (Premium can be added to the mortgage or paid separately). Credit history must be in very good standing.
