100 Percent Mortgages – An Option To Consider

Many people are considering 100 Percent Mortgages today when purchasing a home. Why do people want to go this route? Well, the main reason people like to fully finance their home purchase is because it doesn’t require you to put any cash down. If you don’t have any money in the bank, or if you would rather use the cash that you do have on purchases within the home after you move in, then consider the 100% mortgage.

Consider Freddie Mac For 100 Percent Mortgages

If you are considering a 100 percent mortgage then you may want to look into the Freddie Mac fully financed mortgage. Some lenders will offer this loan and it’s definitely worth looking into if100 percent mortgages your credit score is 620 or higher. There are other requirements in order to qualify for this loan, so if you are interested I suggest doing your research on the additional qualifications. FHA loans also have options for 100% mortgages.

The Risks Of Being Upside With 100 Percent Mortgages

With 100 percent mortgages there inevitably come risks. With putting no money down on your home purchase, you are at risk for owing more money than your home is worth. This is called being upside down on your home purchase. This will cause problems if you are are put into a situation where you need to desperately sell your home. These loans also usually come with a higher interest rate than conventional loans.

100 Percent Mortgages With 80/20 Loans

One method to fully finance your mortgage is with an 80/20 loan. This financing option consists of obtaining two separate loans. The first loan will consist of 80% of the total purchase price and typically carries a normal interest rate. The remaining 20% of the loan will typically carry a higher interest rate.

If you are looking to buy a home there are many ways to finance, 100 percent mortgages are definitely an option that is available. Make sure you do your homework on these loans before trying to qualify, because 100 percent mortgages are not for everyone.

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