Loans requiring no down-payment have become more and more popular (and available) recently. In our opinion, loans requiring a down payment are going to be your best option because you generally get a better interest rate, have instant equity in the home, and may be easier to qualify for.

Because there are many variations to loans which do not require a down payment, you should speak to a loan officer about the programs available. There is generally always a trade-off with 100% financing loans. For instance, you might not need a down payment, but you will have to pay a higher interest rate, is fixed for a short time (1-3 years) and turns adjustable after that, or has a pre-payment penalty. Sometimes, all three conditions exist. One advantage of these loans is that there is usually never any mortgage insurance required. So, even though the interest might be higher, the fact that there is not mortgage insurance can give you monthly payments very similar to a program that requires a down payment.

Example

Based on a Sales Price of $130,000

*Closing Costs will also apply. Please contact your loan officer for an explanation and estimate.
**Figures based on a 700+ Fico, 50% DTI Ratio
***This program is very beneficial for homes that do not meet FHA Property Requirements.