Zero Down Mortgage Loans - Is 100 Financing A Good Idea And Can You Get Approved
Below is a MRR and PLR article in category Finance -> subcategory Mortgage.
Zero Down Mortgage Loans: Is 100% Financing a Good Idea and Can You Get Approved?
Are you curious about securing a home loan with 100% financing? Wondering if opting for a mortgage with no money down is a wise choice? Let's explore key considerations for zero down mortgage loans and determine if you can get approved.
Qualifying for 100% Financing
To obtain a mortgage with zero down payment, you'll generally need a credit score of at least 600. If your score ranges between 600-650, you might need to work with a subprime mortgage lender to secure full financing.
What If Your Credit Score Is Higher?
If your credit score exceeds 650, you're in a stronger position and can typically apply with most online mortgage lenders for approval.
Scores Between 580-600
For those with credit scores between 580-600, a down payment of at least 5% may be necessary, especially when dealing with subprime lenders.
Considerations with 100% Financing
One drawback of 100% financing can be higher interest rates. An alternative is an 80/20 loan, where you take two mortgages?"an 80% first mortgage at a lower rate and a 20% second mortgage at a higher rate. This strategy can help avoid PMI insurance, potentially saving $100 or more monthly.
Explore Your Options
It's beneficial to compare quotes for 100% and 95% financing (involving a 5% down payment). Assess whether the interest rate savings justify the upfront cost.
Next Steps
For a list of recommended online mortgage lenders offering 100% financing for both good and bad credit, visit [this page](http://www.abcloanguide.com/mortgageloans.shtml).
By considering these points, you can make an informed decision about whether zero down financing is right for you.
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