Question:

Are there no down payment mortgage loans?

Answer:

Yes, you can surely hope that the no down payment mortgage loans advertised everywhere are available to you. Zero down, no down payment, 100% financing are what lenders call those loans. No down payment loans require higher credit and good financial standing, or they may be risky for both borrowers and lenders.

100% Financing and No Down Payment Mortgage Loans

100% LTV loans are no down payment mortgage loans. To get one, the lender has to be convinced that you are a good risk and your income, employment and credit score will be under much greater scrutiny compared to loans you could provide down payment for.

Not to mention that you will have to pay PMI. PMI can be dropped after you reach 20% equity, but still - having some cash to put towards the down payment does help a lot.

The no down payment mortgage loan will ask for a FICO of 680, if you are using less than full documentation. No down payment mortgage loans for borrowers with FICO 720+ may be a lot easier to find, and to much more beneficial terms.

With no down payment mortgage loans, avoid subprime loans. You truly do not want subprime loans with no down payment. You can get stuck in high prepayment penalties, excessive rates and depreciating market.

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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