Are There Any Mortgage Loans with No Down Payment?
The short answer is yes, not all mortgage loans require a down payment.
Certain lenders can provide you with up to 5% of your total mortgage amount in the form of a loan or line of credit to cover the cost of your down payment. On the closing day for buying the home, you will receive 5% of the mortgage amount in cash. This process functions as allowing you to take out a mortgage with no effective down payment.
Typically, mortgage loans that do not require a down payment are only available to those borrowers who have demonstrated a sufficiently high income that they would be capable of repaying this expanded mortgage loan. These borrowers must also have a minimum credit score of 620, although some lenders will have even stricter requirements and mandate a higher credit score.
Not requiring a down payment allows the lender to expand their business, offering more mortgage loans than they would otherwise.
- What Is a Mortgage?
- What Type of Loan Should I Get for My Home?
- What Are the Different Types of Mortgage Loans?
- What Is the Process of Applying for a Mortgage?
- What Is the Difference Between a Housing Loan and a Mortgage Loan?
- What Is the Difference Between Government-Insured Loans and Conventional Loans?
- What Is a Down Payment?
- How Much Down Payment Will I Need to Provide?
- What Is an Escrow Account?
- What Is Home Equity?
- What Is the Difference Between a Loan and a Mortgage?
- How Do Mortgages Work?
- Where Can I Get a Mortgage?
- What Should I Look for in a Mortgage?
- Should I Pay My Mortgage Early?
- What Is the Average Mortgage Length?
- What Are the Advantages of a 15-Year Mortgage over a 30-Year Mortgage?
- What Are the Advantages of a 30-Year Mortgage over a 15-Year Mortgage?