You can buy a home with no down payment and finance the entire home's value. Many first-time home buyers cannot afford putting down 20% of the home value, but rather go with a no-down payment option in order to use their savings to purchase furniture or other necessities for their new home.
There is a few ways to accomplish this type of financing.
No Down Payment Mortgage Solutions
One loan with PMI: you can get a single loan and pay Private Mortgage Insurance (PMI). This is typically obtained through an FHA loan (government sponsored loan).
Piggybacking two loans: this allows you to obtain 2 loans on the property for the purchase. An 80% 1st loan and 20% 2nd loan to provide for the full financing. This technique allows the borrower(s) to avoid paying PMI.
An additional part of 100% financing is a Seller Concession. This allows the borrower the chance to roll the closing costs into the loan. This is done when the borrower has very little money at the beginning of the purchase process.
Each way offers specific advantages and disadvantages and choosing the proper solution will depend on your current finanical situation.
Apply Today to have an experienced mortgage profesional compare the best mortgage rates available for zero-down mortgages and help you through this process!
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You can buy a home with no down payment and finance the entire home's value. Many first-time home buyers cannot afford putting down 20% of the home value, but rather go with a no-down payment option in order to use their savings to purchase furniture or other necessities for their new home.
There is a few ways to accomplish this type of financing.
No Down Payment Mortgage Solutions
Each way offers specific advantages and disadvantages and choosing the proper solution will depend on your current finanical situation.
Apply Today to have an experienced mortgage profesional compare the best mortgage rates available for zero-down mortgages and help you through this process!