No Money Down Property Purchase
In this section we are going to examine in detail each of the techniques for completing No Money Down deals and the finance that's required.
The techniques are very different for LMD and NMD investment deals. In essence, LMD deals work on the basis of borrowing finance based on the net purchase price. NMD techniques are based on borrowing finance based on the open market value.
There are few lenders who will provide intitial mortgage finance based on lending against Open Market Value, and hence NMD transactions at the point of purchase are restricted to lenders who are happy with this, or dubious transactions that involve 'grey areas' and would probably be disallowed by the lenders if they were aware what was happening.
We will divide techniques into three timeframes:
|
Short Term |
Immediate on Completion |
|
Medium Term |
6-12 Months |
|
Long Term |
3-5 Years |
We will also consider which techniques can be used for either newbuild or resale property, as restrictions, regulations and best value solutions dictate what techniques work best for different property purchases.
Short Term Techniques
In this section we will look at:
- Market Lending
- Deposit Bridging
- Same Day Bridge and Refinance
- Open Bridging
- Asset Realisation
- Joint Ventures
Find Out More About Short Term Techniques
Medium Term Techniques
In this section we will look at:
- Refinancing after 6-12 months
Find Out More About Medium Term Techniques
Long Term Techniques
In this section we will look at:
- Refinancing after 3-5 years
Find Out More About Long Term Techniques
Next Steps
Learn More... Short Term Techniques
Download the No Money Down Smart Guide
Download The 100% No Money Down Finance Guide

