Question:

Can I get a house with bad credit no down payment – can I use 100% financing?

Answer:

Yes, you could. There are options to get a house even if with bad credit and no down payment.

100% Financing

This is a little expensive form of financing and not every lender offers it. However, 100% financing often requires excellent credit with no down payment money. It might be difficult to locate a lender who will do 100% financing with bad credit. However, it doesn't hurt to make a search. Only make sure you collect and compare quotes and whether the lender is reliable.

A no-cash or no-cost loan combined with funds from down payment grant program will do the job, as well.

80/20 Loan

The 80/20 combo loan combines first and second mortgage on the property, no down payment is required, and the second mortgage can be held by the seller.

Even if you get a no down payment bad credit loan, make sure you don't stay with it. Use it to build up credit, but refinance as soon as your credit allows it. If you are doing this, perhaps you should use an ARM so that you keep your payments small and affordable. If you keep the house, though, an FRM will make more sense as you will be building equity.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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