ERATE research department has suggested "remove the 100% financing content for now and replace with 97% LTV/CLTV under Fannie's MyCommunityMortgage program until I get a chance to redo the page. Fannie will allow up to 105% CLTV with a Community Second for those areas that have them. But this is tricky because under Obama's Making Home Affordable program you can refi up to 125% CLTV."(12/09)
100% Financing No Down-payment Mortgage
100% Financing Mortgages have become a popular choice for financing a home.
Generally Lenders will do the following:
Zero down payment or 100% financing - either a 1st mortgage exclusively or a combination of a 1st and 2nd mortgage* (sometimes referred to as a piggyback mortgage).
Advantages to 100 percent financing:
No Cash needed for down payment
Don't need to liquidate stocks and other investments
Borrower may want to finance as much as possible for tax deduction purposes
Requirements for 100 percent financing:
Property must be owner occupied
Fico Score used to be 620. With recent changes in the mortgage industry the Fico Score requirement has increased.
Normally requires the use of both a first mortgage and a second mortgage
