Are you wondering if you can get approved for a home loan with 100%
financing? Are you also wondering if its a good idea to get a mortgage
loan with no money down? Here are some points to keep in mind as you
apply and consider your different mortgage loan options.
To qualify for 100% financing on a purchase mortgage loan, it would be
important for you to have a credit score of at least 600 or higher. If
you are between 600-650 on your credit rating, you may need to go
through a subprime mortgage lender in order to get 100% financed.
If your credit score is higher than 650, you can probably apply with
most mortgage lending companies online and be able to get an approval.
If your credit score is between 580-600, you will probably need at
least 5% down to make the loan work with a subprime mortgage lender.
Getting a mortgage loan with 100% financing can sometimes mean a higher
rate. Sometimes an alternative is to get an 80/20 loan, which is a
first and second mortgage, with the first mortgage being at a lower
rate and the second mortgage being at a higher interest rate. The
benefit to doing this type of loan is that it eliminates the need for
PMI insurance, which can be $100 or more a month, depending on the size
of your loan.
Also, consider getting quotes for 100% financing and then quotes for
95% financing, with you putting 5% down. See, if the savings on the
interest rate is worth putting the money down.
To view our list of recommended mortgage lenders online who can provide
100% financing for good and bad credit, visit this page:
http://www.abcloanguide.com/mortgageloans.shtml.
