Are 100% Financing Home Loans Still Available?

Last Updated 1/12/2015

Is 100% financing still available for purchase mortgage loans when buying a home today?

Yes! While the media has done a great job of highlighting how challenging mortgage underwriting became in the wake of the crises of the early 2000s, many home buyers may be needlessly be letting themselves be held back by the fear they need more down payment to purchase a home than they actually do.

While there can be advantages to putting down larger sums when applying for a purchase mortgage loan, and each borrower may qualify for different programs, there are still high LTV, and even 100% financing home loans available. In fact, we continue to see more of these loan programs being added all the time.

100% Financing Home Loans

VA and USDA home loans are two of these purchase mortgage programs. FHA home loans offer low down payment mortgages. New Fannie Mae and Freddie Mac purchase mortgage programs also offer 97% for low to medium income borrowers, and first time home buyers.

Even those that don’t qualify for 100% financing purchase mortgage programs can find a variety of other sources of capital to combine to bridge the gap. This can include local down payment assistance programs, second mortgages, and personal loans or lines of credit (secured or unsecured).

Of course, it is important to keep in mind that for 100% financing to mean no money down at closing, it will also need to incorporate closing costs. This generally means rolling these costs into financing as credits from the seller, or even the mortgage lender or real estate agent. In some cases local housing assistance programs may also offer help with closing costs for buying a home. Check them out.