Are 100% Mortgages Still Available?

Are 100% mortgages still available? This is a question often asked by people, especially those who are in need of financial aid to help them pay for a new home. The query is understandable, considering that the economic slump has caused a lot of people to have financial problems, which is why a lot of them are looking at taking out 100 mortgage loans so they can purchase their own homes. This article answers the question to give more information to readers who are looking for financial options available to them.

Are 100% Mortgages still available? First Let’s Look What A 100 Percent Mortgage Is

Before answering the question, “Are 100% mortgages still available?” It’s important to understand what 100 percent mortgages are in the first place. These are a kind of loan wherein lenders provide borrowers the whole sum they will need to purchase the home. As such, you get to purchase your new house even without having to spend years in saving up money to come up with just the deposit for your new home. What’s more, these are no down payment mortgages, which means that borrowers do not need to pay a down payment. Given these, it’s easy to see why a lot of people are interested in 100 percent financing, as it offers an easy and simple way for people to pay back their loans.

Why Are People Asking, “Are 100% Mortgages Still Available?”

The question of “Are 100% mortgages still available?” arose because of the recent economic slump. In the past, creditors have the confidence to lend large sums of money to their borrowers are 100 mortgages still availablebecause they believe that these individuals have the capacity to pay back their loans. The same cannot be said now, as there are now more people who are struggling financially. Creditors are definitely more cautious about their borrowers now because of the economic problems that have arisen in the past few years.

Given this, what is the answer to the question “Are 100 percent mortgages still available?” The answer will actually depend on where you are. Creditors in the UK no longer allow 100% mortgage loans because of the aforementioned reason. However, in the United States, this type of loan is still available, albeit there are some lenders that are more cautious about offering the option to borrowers. The banks and other financial institutions that continue to offer 100% mortgage loans have a simple answer why they continue to do so, and that is because people continue to buy houses, even today. What’s more, the economic slump has caused a lot of properties to be foreclosed, which means that those who are house hunting can potentially save a lot of money when they purchase their new home now.

Are 100% Mortgages Still Available – Who Can Qualify For Them?

Of course, not all of those who apply for this type of loan have their applications approved. You need to qualify for this type of loan, and this means having a good credit score (600 or higher), being known for paying bills on time, and having a steady source of income. These requirements are to show proof that the borrower has the capacity to make repayments for the loan he or she has taken out. These requirements are understandable; after all, the lenders will be dispensing a large amount of money, so they will need to have an assurance that the sum will be paid back in time. As such, it’s only when applicants fulfill these requirements that their applications will be approved.

The recent economic slump has brought one good thing, which is the lowering of the price of real estate properties. As such, this is a good time for you to purchase a new home, while the prices are still low. Because the answer to the question, “Are 100% mortgages still available?” is a resounding yes, you will be able to apply for this loan so you can have the capacity to pay for your house without any problems.

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