100 Percent Mortgages

100 percent mortgages are a good way to move into a new home if you have no cash for a down payment. Zero down payment means higher risks, which means somebody needs to have the money to assume them. It is possible to find 100 percent mortgages, although, perhaps, not easy.

For instance, if you don’t mind living in the countryside, you may want to check out the site of the Department of Agriculture (USDA). In the Housing Assistance subsection of the Rural and Community 100 percent mortgagesDevelopment section you will find topics that address assistance to individuals, to public and nonprofit organizations and to lenders. The first category deals with two types of single family home loan, namely the direct loan and the guaranteed one. It is the direct loan program that could possibly get you a zero down payment loan.

Certain Restrictions To 100 Percent Mortgages


There are plenty of restrictions to this. One of them is the availability of funds. On top of this, the property must be fairly modest, and cannot have forbidden items, like a swimming pool, for instance. The property must be located in a rural area. In case this might discourage you from even considering it, you need to realize that “rural” is a very broad term and can cover smaller towns and some suburbs of bigger cities. Another condition is that the borrower needs to have a low income.

Looking at the problem from another perspective, you could find 100 percent mortgages at some private lenders. One of them, for instance, could be the California based Nationwide Mortgages.

Another Option – 100 Percent Mortgages


Another way to look at the matter would be to get a standard mortgage loan with the usual 20% down payment and borrow money for the down payment from somebody else. Nevertheless, some lenders don’t like this.

A Different Perspective On 100 Percent Mortgages


From a different perspective, looking at the instability from North-Africa and the Middle-East, one could easily see how high oil prices are benefiting some energy producing states like Oklahoma. Some analysts forecast that, if things keep going the way they are, pretty soon you will be able to get a zero down payment mortgage in one of these areas, simply because they will have the money to afford it.

At any rate, you can always seek advice from some the many financial institutions that have an internet presence, bearing in mind that they want to lend money, and will try to do their best to circumvent your possible bad credit rating or any other impediment, as that will bring them income. Sometimes this happens when you are going for 100 percent mortgages.

Nationwide, for instance, specializes in many other things, among which is mortgage refinancing. If you already took a loan on your property and want to change some of its parameters, this is possible and it may take some pressure off or even save you money. If, for instance, you agreed with your lender on a 30-year loan, but things changed and you now find it difficult to cope with your monthly payments, you could extend the 30-year period and lower the monthly fees. Your lender will still make money, possibly even more than from the first deal.

Lenders and mortgage brokers will usually give you a free tour of their financial product portfolios and let you know if they have 100 percent mortgages on their current offer.

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