Midland Zero Down

Midland Loans and Servicing

While some Midland mortgage companies deal exclusively with disbursing mortgage loans for both purchases and refinances, other mortgage companies by the same name deal exclusively with mortgage servicing. Servicing a mortgage is different from what lenders do when they approve and disburse a mortgage loan; it involves maintaining the mortgage after the initial application and closing process has already occurred. Mortgage servicing companies deal with escrow accounts and customer service issues, and oftentimes bundle up mortgages and sell them to other mortgage servicing companies. For this reason, if you do an Internet search for "Midland Mortgage Company" and come across one of the servicing companies, you should not bother looking for an application on the website because you won't find one. Look for a Midland Mortgage Company that lends money for mortgages and that features a zero down program.

Zero Down Payment

Some zero down mortgage plans are nothing more than tricky calculations that break up the amount of the mortgage into separate loans. Although there is nothing innately wrong with these programs, you need to be sure that the zero down program you apply for is actually a loan which you will not be penalized or given substantial extra fees for not placing a down payment. If you apply for a mortgage guarantee through the VA or through an FHA program then you are less likely to wind up bombarded with fees because both organizations limit the amount of acceptable fees charged to guaranteed loans. Several mortgage companies operating under the name Midland deal with both VA and FHA loans.

Find Midland Zero Down Programs

This is merely a brief listing of the many Midland Zero Down programs offered by the various companies peppered throughout the country:

• Midland Mortgage in Georgia offers a Zero Down program which is available to applicants with a good credit rating. Although the funds do not have to go toward the principal of the loan, borrowers must bring at least 3% of the loan to the table in the form of closing costs.
• Midland Federal in Illinois offers a Zero Down program in which 100% of the mortgage loan is financed. This is not a free-standing mortgage company, but instead is a department of a Savings & Loan.
• Another option you may be looking for if your search is for "Midland Zero Down" is the Homebuyer Assistance Program (HAP) through the city of Midland, Texas. This program grants downpayment assistance and zero-interest loans for mortgages to applicants who qualify. Qualifying factors for this loan program include:
• Family size
• Income
• Applicant's residency

There are other necessary factors to qualify for this program. You can find other downpayment assistance programs either through FHA or with a housing department within your county or state. Several downpayment assistance programs are available for people within certain occupations or for applicants looking to purchase homes within urban areas designated for renewal.

Zero Down Drawbacks

Although a zero down payment plan can help some applicants acquire a home loan which they may not have otherwise been able to afford, zero down is not without its drawbacks. Unless your loan is guaranteed, you will wind up paying private mortgage insurance (PMI) until the equity in your home reaches 20%. PMI adds to your monthly costs. You should also be aware with no down payment that if your home depreciates in value for any reason you may wind up owing more than your home is worth.

Even if you qualify for a zero down payment program with a lender or assistance program you still may want to consider a small down payment.