100 Percent Mortgage
Financing
Buying a new home with no money
down has never been easier. If you are unfamiliar with 100
percent mortgage financing, it may help to contact a
mortgage broker
before applying for a conventional loan. At one point in time, buying a home
with no money down was unheard of. Today, the majority of
mortgage lenders offer a range of zero down loan programs. These
loans are ideal for families trying to buy a home with little or no money
for a down payment.
Benefits of 100 Percent Mortgage Financing
The benefits of applying for a no money down home loan are
obvious. Ordinarily, mortgage lenders would ask new home buyers to have a
down payment of 20%, 5%, or 3%. Rising cost of living makes it difficult
for middle class families to save money for a home purchase. Instead of
alienating the majority of working class people, lenders chose a smarter
approach and begin offering a variety of home loans for every need.
With a 100 percent
mortgage financing, down payments are
not required. The downside is that these loans may carry a slightly higher
interest rate. However, if your credit rating is high, the rate increase
is barely noticeable. Of course, good credit is not required for getting
a no money down home loan. Fortunately, there are loans available
for all credit types.
Different Types of No Money Down Loan Programs
Another option for obtaining 100 percent financing involves
getting a home mortgage
loan for 103 percent or 107 percent financing. 107
percent financing is perfect for homes that need a lot of cosmetic
repairs.
If applying for more than 100 percent financing, a good or fair credit
rating is a must. Typically, 103 percent full document loans require a score of
at least 600. A credit score of at least 680 is required for 107 percent
home loans.
Self-employed homebuyers can get approved for a stated income no money
down loan. These individuals will likely need 12 months of banking
statements, tax returns for the past two years, and a credit score of at
least 650. Having bad credit will not disqualify you from getting 100
percent financing. Full document bad credit no money down
home loans are available to those with credit scores as low as 580.
