100% Financing or No Down Payment & Bad Credit Mortgage Insurances

Mortgage lenders now offer financing packages with zero down. Interest rates are higher on these types of insurances, but they make buying a home easier. And unlike a traditional insurance, private mortgage insurance is not required. There are two types of mortgage packages, each with their own requirements.

Types of Zero Insurances

100% Financing, as the names imply, provides full financing for your property. The other 80/20 option is to finance your mortgage with two insurances. The lender may hold both insurances, but sometimes the seller or second lender is required to take on the 20% mortgage.

100% financing is easier to deal with, but not all lenders will offer this type of home insurance. 80/20 financing is more common, but it does require some negotiation if the seller is involved.

Qualifications zero down

Each lender has its own criteria for determining who will be eligible for a zero-value insurance. Most mortgage lending institutions require any bankruptcy or foreclosure at least twelve months in advance. Conventional insurance requires disbursed two to four years in advance.

While a credit score of 600 or higher is best, large cash reserves can also qualify you. Six to twelve months cash reserves in the form of savings, money market or other liquid assets are ideal.

If you choose 80/20 financing with a seller who holds a second mortgage, you can qualify with lenders with a secondary mortgage score of 560.

Tier 1 Lenders

You can find low-risk mortgages with traditional and specialized sub-prime lenders. Make sure you ask for quotes from as many mortgage lenders as possible to make sure you find the lowest rate and the best terms.

You will also need to decide what type of mortgage you want. ARM is easier to qualify for and has lower rates. A fixed rate mortgage provides security at a fixed interest rate over the term of your insurance.

ARM is usually a better deal if you plan to refinance within two years. After you improve your credit history, you can refinance a traditional mortgage with lower interest rates.

To view our list of recommended online sub-prime lenders, visit this site

Page: Recommended Online Bad Credit Mortgage Lenders.