Will we qualify for a 100% mortgage loan?

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My husband has a credit score of 721 and I have a credit score of 675, will we be able to get a mortgage loan without setting down a down payment?

  1. Reply
    April 29, 2011 at 9:17 pm

    You should talk to a mortgage broker. The days of 100% loans are long gone.
    Your husband’s score is barely in the very good range and yours is just OK.
    But why do you want to take out a 100% mortgage? You are just setting yourself up for a high interest rate and damage to your credit. If housing prices go any lower you will quickly be underwater on your loan.
    Just wait, improve your credit score, and save up some down payment money.

  2. Reply
    Shaun M
    April 29, 2011 at 10:02 pm

    I would think no matter what your credit score that putting at least a little cash down on a house is a good idea. That’s your first bit of equity. It gives you a little leeway. Don’t let the mortgage company get you upside down on your loan before you even start. Call around and ask different mortgage brokers. Get all the advice you can. But again I would say that anything you can put down is just a good thing for you.

  3. Reply
    April 29, 2011 at 10:50 pm

    Banks are not doing no-down-payment mortgages anymore. 100% financing for homes were a major part of the reason for the foreclosure crisis as when housing prices tanked, people who took 100% financing had no equity so they just walked away from the house.

    You can apply for FHA financing which requires only 3.5% down, but expect to put in some type of downpayment.

  4. Reply
    April 29, 2011 at 11:29 pm

    Yes, I think you will depending on the type of loan you qualify for. Our credit isnt that great but we are 100% financed. Remember there will be closing costs though.

  5. Reply
    April 29, 2011 at 11:55 pm

    Actually, if you buy in a qualified community, Rural Development is about the only one out there giving 100% financing. Any conventional loans over 80% require Mortgage Insurance, and they are very strict. They do take the lower of the credit scores for both borrowers, and, unfortunately, yours is 5 points too low. FHA is a good program, but does require the borrower to have 3.5% of their own funds into the transaction (can be a gift, though).

    I’d suggest you talk to your lender and find out what options would best fit your needs.

  6. Reply
    April 30, 2011 at 12:25 am

    These days, 100% financing is a thing of the past with a couple of exceptions: if you live or plan to purchase in a rural area then a USDA Loan may help. Also, if you are a veteran, you may qualify for 100% financing through a VA Loan. Your scores are okay, but you will need several months of cash reserves, stable income and have been in the same line of work for at least two years, among other qualifying factors. Your best bet is to talk to a local mortgage broker. Good Luck!

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