There are lenders willing to lend you 100% of the value of your home. 100% financing loan programs enable you to buy a house with no money down or get a 100% cash-out refinance. There are 3 ways to get the financing to cover 100% of your home's value and you must have excellent credit and verifiable income for all 3. Talk to your specialist to determine which program is right for you.
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All One Loan
This is the simplest loan option. The lender issues one loan that covers 100% of your financing needs. Although this option may have a higher monthly payment than the other options described below, it is the least complicated. PMI may be required. 700 credit score or better. -
The 80/20 Breakdown
The 80/20 can offer you the lowest monthly payment. With this option, you take out two loans. The first mortgage will amount to 80% of the value, the second mortgage will make up the remaining 20%. No PMI is required. 700 credit score or better. -
The Seller Carry-Back
The traditional no-money-down purchase. In today's market, many home sellers may "carry-back" the downpayment. A "carry-back" means the seller loans you the downpayment to buy their home. What's in it for them? The seller would enjoy additional interest income on the money they lend you! This can be useful to you by lowering the amount of money you need to borrow from the bank. If the seller offers to carry-back a portion of the purchase price as a second mortgage, you will apply for financing for the remaining amount of the purchase.
