How does 100% financing work for buying a home? Good idea?

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I am a teacher. I was reading my union newspaper and I see a lot of mortgage/lending companies that offer such things as 100% financing and low interest rates. Is this something worth me considering to buy a home?

Also, I am married and my husband works as well (he’s not a teacher). I do have student loan obligations and a few credit card bills and little savings. We are currently trying to better our financial situation and save more.

We are moving to a new place in the next 8 months (rent or buy- whatever we are able to do at the time). If we rent, I know the payment will increase by 300-400 a month since we are getting a bigger apartment. If we can get a mortgage, then I really don’t know….. Anyway, help me out?

Tell me to contact a person with a yahoo email address and say they got a great loan with a 2% interest rate. Does this seem like a scam? Here are some of the replies..

“I am Joy Anderson i was in need of a loan of $ 100 000 USD and was scammed by those fraudulent lenders and a friend introduce me to Mr John clarke,and he lend me the loan without any stress,you can contact him at clarkeloanscompany12@yahoo.com”

“I applied and was approved for one of your loans yesterday and I wanted to write and tell you about my experience. My loan agent, Mark M. was amazing! He handled everything very professionally and quickly. He was extremely patient, helpful and very courteous at ALL TIMES. There was NO STRESS or pressure what so ever. He walked us through the whole procedure and made sure we understood each step before moving on to the next one. I ended up having to call him back with a correction and he took care of it immediately. He was just a true joy and I just can’t say enough. I hope you will give him the recognition he so deserves because it has been a very long time since I have had wonderful service like this! This was a totally stress free and wonderful experience! here is there email, john108023@yahoo.com.hk Thank you Mark!!

Yours Truly,

T Matthews Sr.”

Here is one from him himself…..
“I am Mr. John Clarke, a Reputable, Legitimate, Certified, Reliable & an accredited money Lender. I loan money out to individuals and corporate bodies in need of financial assistance. Do you have a bad credit or are you in need of money to pay bills? I want to use this medium to inform you that i render reliable beneficiary assistance as I’ll be glad to offer you a loan at 2% interest flat rate. What did your bank say concerning having a loan from them???? Don’t feel disappointed if they refuse granting you a loan. I hate what the banks do when customers/consumers are willing to lend money even with collateral and valid documents. I look forward permitting me to be of service to you. Send me an- E-mail me by replying to my email clarkeloanscompany12@yahoo.com and I’ll do my best to help you out in your bad finances situation.
Regards,
Mr. John Clarke.”

It just sounds fishy to me. I’m looking for a home equity loan or 2nd mortgage to help pay off some medical bills and for some extensive dental work for my son. Would also like to have some in savings for emergency. My wife and I have a low credit score due to a injury about 4 or so years ago and not being able to work. Most of our income go towards helping our son receive services to help him succeed as he has a disability. I am now back to work and my wife continues with her job as a teacher. We also have our house paid off in full and have no credit cards. The only debt we have are some medical bills.
It just seems weird how some people have replied with a few different email address about this guy in my other questions. I guess if I read the paperwork thourougly and have a attorney look at it I should be alright if legit, correct?
Thanks for the answers. I emailed the person with a email address I just created. It is someone from nigeria asking info such as name, address, phone number, and ssn if applicable. It is a total scam for sure. I also read other questions on here similar to mine with the same sort of responses. If it sounds to good to be true, it usually is! That’s kind of what I figured but thought it was worth asking. I’m going to talk to my local bank, explain my situation, and hopefully they can help or point me in the right direction.
Thank you everyone!
The name of this guy’s company is…
Clarke Loan Firm located in Nigeria. Millions of spammers from there!
Here’s a link to my original question if anyone is interested…….

http://answers.yahoo.com/question/index;_ylt=AlrCA7GWy7HTSNzeEl7kTHvsy6IX;_ylv=3?qid=20090611233627AA801O6

8 Comments
  1. Reply
    skr
    February 23, 2011 at 12:19 pm

    it’s always a good idea to buy. There are quite a few programs just for teachers. Just be sure you know what you are getting into often there are hidden fees and penalties for the 100% down payment assistance programs.

  2. Reply
    Sharon B
    February 23, 2011 at 12:49 pm

    There is really no such thing as 100% financing…at least not in California! Depending on your state most teachers belong to a credit union. The Teachers credit union and your state usually offer great deals for teachers. In California we have CalSters and other programs that help teachers secure home financing and at the same time protect the teachers from high cost mortgage loan offers!

  3. Reply
    Common Sense
    February 23, 2011 at 1:46 pm

    There is no such thing as 100% financing unless you are in the 1% of people who have flawless credit.
    You need 20% down

  4. Reply
    CatLover
    February 23, 2011 at 1:59 pm

    The only way to find out if you will qualify for any loan and how much a bank/mortgage company is willing to loan you is to get preapproved.
    To get preapproved, visit your bank or another reputable/well-known bank or mortgage company and tell them you are thinking about buying a home and want to know if you qualify.
    They will take all your financial/employment info and then tell you if you qualify and how much they will loan.

    If they say that you qualify for a loan and they will loan you $ 100,000 for instance, then you will know what price range of homes to start looking at. A real estate agent can help you find homes in your price range. They can also help you get preapproved if you want to start there instead.

    As for 0 down loans. Nothing wrong with them.
    You will just have PMI (mortgage insurance) added to each monthly payment until your equity reaches 10 -20% of the value of the home. Then the PMI will be removed from the payment. PMI on a 120,000 loan for instance is ablout $ 45. a month.

    I hope this helps.

  5. Reply
    Joe M
    February 23, 2011 at 2:40 pm

    Yahoo Answers is full of spammers/phishers. It’s easy to know who the spammers are, since they answer using the exact same message for each question. These are spamers/phishers who replied. Your best bet for a loan is an actual bricks and mortar bank, don’t even think of replying to these answerers.

  6. Reply
    Zbigniew
    February 23, 2011 at 2:40 pm

    Don’t look for things like this on Yahoo Answers. You will get thousands of spam, self promoting answers with no real value.
    Check comparsion websites like moneysupermarket.com or http://www.GoCompare.com and find what will work best for you.
    When you asking for quotes – whatever you do, do not give them yor mobile… I did that 2 years ago and I’m still reciving messages like ‘You loan application has been approved. Call on xxxx to get your $ 10000 loan’
    It is soooo annoying….

  7. Reply
    MyNewNickName
    February 23, 2011 at 2:48 pm

    People with enough cash to be able to loan it to others don’t use free Yahoo addresses.

    Even if paperwork looks legit it could be copied from a bank’s contract – doesn’t prove Mr Clarke is legit and wastes your money on lawyer.

    At some point they probably ask for your bank account details ‘to deposit’ funds, and they’ll have lots of other personal details so they’ll be all set to commit fraud and rip you off.

    Or they ask for a fee upfront and don’t follow up.

    Or they do loan the money but the interest rate climbs after 1 year.

    Or something else dodgy.

    Don’t put yourself at risk.

    Good luck in finding a safe way forward.

  8. Reply
    InspectorBudget
    February 23, 2011 at 3:04 pm

    These are just scammers hoping to land their next victim.
    Just ignore them and move on. The best way is to go to a bank or a well known lending company.

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