No Money Down
Unlike mortgages of years ago, there are dozens of programs available for people to choose from when purchasing a home. This is also true for no money down programs or 100% financing. People are mostly mislead by mortgage companies offering 1, 2 or 3 percent down payment programs, what they fail to realize is that in addition to the down payment, you are also responsible for any closing cost that will be applied.

Lets look at the following example: Leslie and John have saved $3,000.00 towards a down payment in order to purchase a new home for $100,000 with a standard FHA loan. FHA requires that you have at least a 3% down payment. Leslie and John talk to their loan officer and he states that they have to bring almost $8,000.00 to the closing table. Shocked, they did not anticipated the extra five thousand dollars that is needed to go to closing.

What happened in this situation? What john and Leslie did not know is that in addition to the 5%+ in closing cost there is also a FHA funding fee that can run in to the thousands.

How can a mortgage company offer a no money down loan? This is a very good question. There are several types of 100% financing available today. I have explain a few of the most common was we can offer a no down payment loan to you.

1. 80-10-10's, 80-20's and more. At this point you are asking, what in the world is this? One of the most common ways of offering 100% financing is by breaking the loan down in to several loans. Lets say that you are looking at purchasing a home for $100,000. You would have one loan for $80,000 and have a short term mortgage for the remaining 20%. When you break the loan down in to several loans you actually avoid other cost such as PMI and MIP. The first mortgage can usually be anything from a fixed mortgage to a adjustable program. The second mortgage though is most likely a fixed mortgage for a 15 year term.

2. There is also the option to have one mortgage for the complete 100%. These types of mortgages are more rare and have stricter qualifying requirement.

Rule of thumb: The higher loan to value, the higher the rate

$0 Money Down Programs
Many potential home buyers never take the first step in home ownership because they lack the money for a down payment. We realize that many potential home owners have no problem making their monthly rent or mortgage payment and simply lack the resources for a sizable down payment.
 

If you are looking for a no down payment program, We allow a borrower to finance 100% of the purchase price. And even allow the seller to contribute toward the closing costs. So this makes it easier for potential home buyers to get into their dream homes without having to empty their bank accounts and savings. These programs are not only available to first time home buyers but every type of borrower--even if you have credit issues!

Don't forget to ask you mortgage consultant about these programs: 80-10-10, 80-20, 100%, maximum sellers concession and more. You loan consultant will guide you through all your choice in order to find a scenario that will benefit you when purchasing a home with no money down. To get started complete the small form at the top of this page.

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