No Money Down Mortgages - What Are My Options?

Summary

There are many loan options for borrowers who want a no money down mortgage.

Here are some quick tips to help you.

Basics

Getting 100% financing is much easier today than it was in the past.

Previously many lenders preferred that a borrower put down at least 5% or 10% of the property's value.

Now most lenders offer 100% financing to a wide range of people.

Here are some loan factors to consider:

• credit
• loan amount
• loan type

Credit

Lenders will lend to borrowers of all different credit types.

Even if you have been rejected by one mortgage lender you may certainly try with another one.

There are hundreds of mortgage lenders competing for your business.

One lender may not be able to do a certain loan, but many others will have no problem providing the loan. This is because mortgage lenders often have very different lending criteria.

Having bad credit doesn't automatically disqualify you from getting 100% financing.

If you have other factors in your favor, such as assets, good income, and employment you may still be able to make the case for 100% financing.

Lenders can be more flexible in their lending practices than they were in the past.

Keep in mind that the better your credit is the lower your interest rate will be, in general.

Loan Amount

Lenders offer 100% financing for many different loan sizes.

There are lenders that offer 100% financing for properties of all types even over one million dollars.

Loan Type

Lenders offer many loan types for zero down buyers.

This may include 30 year loans, 40 year loans, interest only loans, or minimum payment option loans.

Some lenders may approve you for one type of loan but not for another type of loan. Check with the loan officer to see which types of loans you are eligible for.

Keep in mind that lenders often have very different loan programs from one another. Just because your neighborhood bank doesn't offer a loan doesn't mean no one else will.

Some lenders specialize in borrowers with bad credit.