Do you want to know if you can get a home loan if you pay for it all yourself? Do you also wonder if getting a mortgage loan with no money down is a good idea? Here are some things to think about as you apply for a mortgage loan and look at your different options.
To get a mortgage loan with full financing, your credit score needs to be at least 600 or higher. If your credit score is between 600 and 650, you may need to go through a subprime mortgage lender to get a loan for the full amount.
If your credit score is higher than 650, most mortgage lending companies will probably let you apply online and approve you.
If your credit score is between 580 and 600, a subprime mortgage lender will likely want you to put at least 5% down on the loan.
When you get a mortgage loan with 100% financing, you might have to pay a higher rate. A second option is to get an 80/20 loan, which is a first and second mortgage, with the first mortgage having a lower interest rate than the second mortgage. With this type of loan, you don't have to pay PMI insurance, which can cost $100 or more a month, depending on the size of your loan.
Also, think about getting quotes for both 100 percent financing and 95 percent financing with a 5 percent down payment. Check to see if the interest rate savings are worth putting down the money.
Go to http://www.abcloanguide.com/mortgageloans.shtml to see a list of online mortgage lenders we recommend who can give 100% financing to people with both good and bad credit.
