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Banking and Finance  » Buying a Home with No Money Down

Buying a Home with No Money Down

If you are on the market for a new home, you may want to look

into buying a home with no money down, otherwise known as 100%

financing.

The benefit of buying a home with no money down is that you will

be able to use the money you normally would use for a down

payment for other things, such as closing costs, or putting it

toward new furniture.

One of the requirements for buying a home with no money down is

having excellent credit, or, at the very least, next to

excellent credit.

Keep in mind, when borrowing up to 100% of the value of a home,

the lender may charge you a bit more by bumping up the interest

rate.

The lender does this because when they approve a loan for 100%

as opposed to 95%, they are taking on more of a risk. Therefore,

they slightly raise the rate.

Remember, borrowing up to 100% can be very convenient if you

simply don't have the money for the down payment, and we all

know, we pay for convenience.

Because of the slightly higher interest rate you may run into in

this situation, you may want to consider shopping around for the

best rate and product to fit your needs and budget.

The mortgage industry is a highly competitive one, and there are

many mortgage companies out there across the United States that

offer programs with the option to purchase a home with no money

down.

If you are not interested in doing the shopping around yourself,

or simply just don't have the time, you may want to consider

hiring a broker to do it for you.

Brokers have access to hundreds of lenders across the United

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States, making it easier to shop a few mortgage companies for

you.

It really wouldn't hurt to allow one of these brokers to assess

your situation than let them speak with a few lenders to see

what kind of deal they come back to you with. Once they have

done this, you can base your consideration on the best rate and

program they can get you for buying your home with no money down.

Keep in mind, mortgage brokers and lenders work on commission,

so finding you a mortgage product and getting it to the table is

just as important to them as it is to you. Best of luck.

About the author:

Jennifer Hershey has more than twenty years of experience in the

Mortgage Industry as a loan officer. She is the owner of

http://www.explainingmortgages.com/, a mortgage resource site

devoted to making mortgage terms and products easy to

understand.