A no money down mortgage was much more common in the days before the recession hit, but some lenders still offer them. Only those buyers with the best credit history are considered and they have to have a good income. But, for those who qualify, it is a great way for people to get into a home and find the stability that homeownership can provide.
Some mortgages, those backed by FHA, want you to put down at least 3.5% of the home value as your down payment along with making mortgage insurance payments during the full term of the loan. Other lenders want even more, up to 10 – 20%. The higher down payment mortgages do not require insurance, so though there is more due up front, the overall cost is lower.
You may be wondering what is necessary to obtain one of those zero down loans. A good credit score is a start. Lending institutions typically require 700 or higher. You will …