No Money Down Mortgage

No money down mortgage – is such a thing possible? The answer is yes, provided you meet certain criteria.

Getting a home with no money down really depend on your credit history .The bottom line is that if your credit is bad, it’s going to be impossible or very difficult to secure a mortgage loan with no down payment. A few years ago, it was actually easy to get a home loan if your credit was bad, but not anymore. The financial crisis has changed the financial landscape and good credit history is required for such mortgages.

To get a mortgage, you will need to approach a bank or other mortgage lender. If your credit history is good, the mortgage broker will want to verify your income status. It’s not enough to just have good credit – you need to have a stable job and show at least 6 months of employment history. A bank will not give out a mortgage if they think you can pay – especially in a bad housing market.

If everything checks out, you stand a pretty good chance of getting the mortgage. So, with good credit history and a stable job, 100% mortgage financing is certainly possible.

However, it’s always better to put a down payment on. This will give you a better interest rate (down payment = less risk for lenders) and you will save money over the long run because you owe less on the home. If you are just trying to buy investment property, then no money down may be a good option. However, if you are planning on keeping the home for a while, realize that over the long run you will pay a lot more money because you didn’t put a down payment down.

Now, another question that needs to be consider is how to get a no money down with bad credit history. These days, it’s tough to get a no money down home at all – even with good credit. The bottom line is that you have very little chance of securing a no money down home from a traditional lender with bad credit. It may be that with credit that’s not too bad and a solid employment history, you may be able to get a no money down home with higher interest from a bank, but the chances are not high.

Your best chance is to look at the bad credit lending market and see what sort of no money down offers you can find. Some subprime lenders are still giving out no money down financing, but you will be getting subprime mortgage interest rates – and very high ones at that.