Website design By BotEap.comGetting 100% financing with bad credit can land you in a home with few out-of-pocket costs. However, the higher rates will make the loan more expensive than financing with a down payment. There are some cases where zero down payment can be a benefit, especially if you plan to move or refinance soon.

Website design By BotEap.comThe cost of zero down

Website design By BotEap.comZero down will cost you more with higher interest rates. These fees will also increase your monthly payments. Some finance companies also require you to pay additional points or fees at closing. It is best to request 100% financing quotes from many lenders to find the best deal.

Website design By BotEap.comYou can lower these rates with an adjustable rate mortgage (ARM). These types of loans are the easiest to qualify for and start with lower monthly payments. The only drawback is that fees and payments can increase over time. But you always have the option to refinance to lock in your current rates.

Website design By BotEap.comLiving Expense Savings

Website design By BotEap.comWhile 100% financing can be expensive, it will save you money on living expenses. Buying a house is an investment, unlike renting. Your monthly payment is increasing the value of your home. Weather and market demand will also increase the value of your property.

Website design By BotEap.comBy working with a subprime lender, you don’t have to worry about zero down payment Private Mortgage Insurance (PMI). Lenders absorb the risk with the highest rates. You also have the tax deduction of your interest payments each year and, in some cases, the closing costs of the loan.

Website design By BotEap.comFinancing based on your future goals

Website design By BotEap.comNo down payment loans have a place for homeowners. If zero down payment means the difference between renting and owning, then invest with the 100% financed loan. By keeping some cash reserves, you improve your credit score and protect yourself from a financial emergency.

Website design By BotEap.comIf you plan to move or refinance in a few years, then a loan with no down payment doesn’t have the full financial impact. Since you’re paying interest in a short period, you won’t suffer from years of higher rates.

Website design By BotEap.comAs with any type of mortgage, shop around for lenders. Be honest about the financing package you want. And remember, you can refinance for better rates and terms as your credit score improves.