Astronauts Eligible for Mortgages With No Money Down

May 2, 2011 No Comments »

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We all know it’s hard to find a mortgage with zero down these days. You can thank everyone who got one a few years ago for that. This is why we can’t have nice things.

Heck, post mortgage crisis, most borrowers have to go with FHA loans if they’ve got little in the way of assets for a down payment, as the loan program allows financing with just 3.5 percent down.

But not all hope is lost for zero down. And you don’t have to travel to some distant planet to find it. In fact, it’s now available right here on Planet Earth.

Are You a Space Traveler?

If you travel to outer space often, or live with someone who does, you might be able to get your hands on a mortgage with zero down. This is one of the little-known perks afforded to astronauts, other than exploring new worlds and traveling at 18,000 mph.

That’s right; the folks over at the NASA Federal Credit Union are offering a so-called “High Loan to Value Mortgage” for a limited time to its people.

The “unique loan” allows 100 percent financing for loan amounts up to $650,000, and does not require costly private mortgage insurance (PMI is typically required for loans with LTVs over 80%). However, even when not charged, it’s typically priced into the mortgage rate. So compare the rate to other products.

For those spacemen and spacewomen with loan amounts between $650,001 and $850,00, they are offering purchase money mortgages with loan to value ratios up to 95 percent. Still pretty good given the current lending environment.

The program also offers cash out refinancing up to 95 percent loan-to-value up to $650,000 (and 90% cash out from $650,001 up to $850,000).

But financing is only available for primary residences in Maryland, Virginia, and Washington D.C.

As expected, the loan program is only available to well-qualified applicants, such as those with good credit and steady income.

It also makes me wonder how much we’re paying our astronauts. Are they not making enough to set aside cash for a down payment? Doesn’t seem fair given the tremendous value they’re providing to us simple Earthlings.

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