1. Title:
100% Financing Or No Down Payment & Bad Credit Mortgage Loans
Word Count:
350
Summary:
Sub-prime lenders now offer financing packages with zero down. Interest rates are
higher on these types of loans, but they make purchasing a house easier. And unlike a
conventional loan, there is no private mortgage insurance required. There are two
types of zero-down mortgage packages, each with their own requirements.
Types Of Zero-Down Loans
100% financing, as it names implies, offers complete financing of your property. The
other option, 80/20, finances your mortgag...
Keywords:
mortgage loans, bad credit
Article Body:
Sub-prime lenders now offer financing packages with zero down. Interest rates are
higher on these types of loans, but they make purchasing a house easier. And unlike a
conventional loan, there is no private mortgage insurance required. There are two
types of zero-down mortgage packages, each with their own requirements.
Types Of Zero-Down Loans
100% financing, as it names implies, offers complete financing of your property. The
other option, 80/20, finances your mortgage with two loans. Both loans may be
carried by your lender, but sometimes the seller or a second lender is required to carry
the 20% mortgage.
100% financing is easier to deal with, but not all lenders will offer this type of home
loan. 80/20 financing is more common, but takes some negotiation if the seller is
involved.
Qualifications For Zero-Down
Each lender has their own criteria for determining who will qualify for a zero-down
loan. Most sub-prime lenders require any bankruptcies or foreclosures to have been at
least twelve months ago. A conventional loan requires these to be discharged two to
four years ago.
While a credit score of 600 or higher is best, large cash reserves can also qualify you.
Six to twelve months worth of cash reserves in the form of savings, money market, or
other liquid assets are considered ideal.
If you choose 80/20 financing with the seller carrying the second mortgage, you can
qualify with sub-prime lenders with a score of 560.
Zero-Down Sub-prime Lenders
You can find zero-down sub-prime mortgages with both conventional and niche
sub-prime lenders. Make sure that you request quotes from as many mortgage lenders
has possible to be sure you find the lowest rate and best terms.
2.
3. You will also want to decide what type of mortgage you want. An ARM is easier to
qualify for and has lower rates. A fixed rate mortgage offers the security of a constant
interest rate over the life of your loan.
Typically an ARM will be a better deal if you plan to refinance within a couple of
years. After you have improved your credit history, you can refinance for a
conventional mortgage with low interest rates.
100% mortgages
