As of the beginning of the year in 2007 100% financing has been getting more
difficult to obtain for many consumers. 100% financing was becoming ever
increasingly easy to get to buy a home with 0 money down. However, with the
recent mortgage market meltdown and the record number of foreclosures that
have been taking place many lenders have discontinued 100% financing for the
time being or they are increasing their qualifying guidelines for 100%
financing. Do not be alarmed though because there are still many programs
that will allow 100% financing for people with less than perfect credit. You
can still obtain 100% financing through Fannie Mae programs, Freddie Mac
programs and FHA programs.
Today’s lending market is far more lenient with home loan financing than in times past. The ability to borrower up to 100% of the homes value would have been un-thought of 20 years ago.
If you are looking for 100% financing but do not qualify for it, there are down payment assistance programs available that can help you purchase your new home. Ask your mortgage professional in North Olmsted, about such programs that may be available to you. These programs are available to people in every credit situation, and are a great tool to get you in your dream home.
For example: FHA requires that you put 3% down to qualify for an FHA mortgage. The grant programs will give you the 3%, as long as the sellers agree to it, and it is written in the offer to purchase. The money does not get paid back from your funds ever, thus achieving 100% financing. for you. This is just one example of how a down payment assistance program can work for you.
Since real estate values have increased at a much faster pace in recent years, many home buyers find it difficult to save for a down payment. As a result, 100% financing has become ever more popular. Although more banks are offering an array of 100% financing loan products, home buyers should be realistic and expect to pay higher interest rates on these types of "No Money Down" mortgages.
When you are purchasing a home with 100% financing it is an option to get the home sellers to pay your closing costs. This can make owning a new home a very low cost process.
If possible, it is recommended to split the 100% financing into 80/20 to avoid PMI on the mortgage. The borrower should be aware that the PMI you pay every month is not tax deductible.
Usually people will go with 100% refinancing in order to be able to take as uch cash out that is needed. There is also 80/20 programs that may have lower rates
The 80/20 combo is the most popular 100% loan available although there are a few lenders who are giving better pricing with the 70/30 and 75/25 combos.
In 2005, 43% of first time home buyers used 100% financing programs.
100% financing can be obtained by financing one loan at 100% of the value of the home or by dividing the loan up into two mortgages and financing an 80% 1st mortgage and a 20% 2nd mortgage, which is called an 80/20. An 80/20 is becoming a very popular financing option for people looking to avoid mortgage insurance.
There are even programs that will allow you to finance up to 103% of the purchase price of the new home, the additional 3% is used to help pay for closing costs.
When you are purchasing a home with 100% financing it is an option to get the home sellers to pay your closing costs. This can make owning a new home a very low cost process. Make sure your realtor knows that you want seller paid closing costs when you write your offer to purchase.
In addition to the 100% programs for your primary residence there are now programs that will allow you to purchase a non owner occupied or investment property to 100%.
There are certain qualifications to get 100% financing that your mortgage broker can help you figure out. They are very lenient and there are tons of programs available. If you're even considering purchasing a home, contact your broker now firstname.lastname@example.org.
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Information listed above is to be used for educational purposes only and is not guaranteed