Mortgage Lowdown

If you are a first time homebuyer or have less than perfect credit, because of which you may think your loan options are dim, here’s a word of advice—quit worrying. There are many ways in which a person with a not-too-good credit can get a loan. One of them is 100% mortgage financing. There are many sub prime lenders that offer 100% financing on a bad credit loan. In some instances, you may qualify for 103% financing. The extra money helps you pay the closing costs and other fees.

So what exactly is a 100% financing mortgage loan? It is essentially a no-money-down loan. Lenders have different guidelines for the 100% and 103% financing loans. To qualify for 103% financing, borrowers need a credit score of at least 600. For a full doc 100% mortgage financing, credit scores must be at least 580.

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This entry was posted on Friday, August 18th, 2006 at 7:32 pm and is filed under Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.