In an attempt to improve the rate of home ownership, the mortgage industry as a whole has made several additional offerings that specifically target borrowers with the desire to purchase a home without a down payment.
It is important to note that the term, “100% financing,” does not necessarily mean higher rates. In fact, if you have good credit, you are still eligible for the same rates that apply to most conventional loan programs.
However, higher standards of credit history are required these days, because there is a higher risk involved for lenders in the granting process of this type of loan.
These programs are good for:
- First-time home buyers
- Buyers with limited resources and funding
- Young adults entering the work force, building up their assets
Be sure to do your homework and calculate your potential expenses and monthly payments.