Obtaining a home with the large down payment is not possible when you are under the financial pressure or you have some credit issues from which you want to get rid of. Fortunately, today we have no down payment mortgage lenders who are willing to provide the mortgage loans without any down payment.
No Money Down Mortgage Programs
Basically there are 2 types of mortgage loans are offered in the market.
- 100% mortgage loan
- 80/20 mortgage loan
100% mortgage loan
This type is the most preferred type of loan. When you obtain this loan you can get the 100% amount you need to buy a mortgage.
80/20 mortgage loan
Getting this type of no down payment mortgage is easier than the 100% No Money Down mortgage. Here the loan will be provided to you as 2 mortgage loans. It is also the most common type of no down payment mortgage.
How to get qualify?
People with the bad credit can easily get the no down payment mortgages. But thing is when you have a bad credit then you should find a lender who is specialized in dealing with the bad credit mortgage loans. Because these lenders are very experienced with the process of obtaining necessary finances for such kind of people.
Since they will be willing to offer the loans with best mortgage rate that no other will be interested to offer these lenders are the one you need to work with. As long as no down payment mortgage loans are considered every lender will have their own terms according to which they will qualify you for the loan.
When you have an excellent credit score then you can get an approval for the 100% no down payment mortgage with the best interest rate.
When you have a good credit score around 560 or above then possibilities are there for you to get qualify for the 80/20 no money down mortgage financing.
If you want to obtain a no down payment mortgage then you can give a try to the lender abcloanguide.com
How to increase the possibility of approval
It is good to check your credit report before applying with any mortgage lender. Know what is your current credit score .If your credit score falls below 560 then you need to improve the credit score. Review your credit report carefully and spot out if there are any mistakes. Every year people are reporting the credit bureaus with the incorrect information printed on their reports. Even a minor mistake can hit the final credit score very badly.
Things To Consider – Draw back
This no down payment mortgage is interest only ARM. When you sign up with the no down payment mortgage initially you will have the best mortgage rate and it will be enough for you to pay only the mortgage interest rates for 2 to 3 years of span. But when the plan changes into the standard mortgage premium, it can raise up to 80%.
When this unexpected premium posed on the home buyers most of them are not aware the reason for why they got this sudden interest rise. So it is good to ask your lender on the interest rate before you step into the no down payment mortgage. When your adjustable fixed rate mortgage have some 5 years of grace period then you will be having the option to refinance your mortgage since your home have already started to build up the equity. But if you don’t make any repayment on your principle amount then you will not be left with any equity.