| Sub-prime lenders now offer financing packages with | | | | years ago. |
| zero down. Interest rates are higher on these types of | | | | While a credit score of 600 or higher is best, large |
| loans, but they make purchasing a house easier. And | | | | cash reserves can also qualify you. Six to twelve |
| unlike a conventional loan, there is no private mortgage | | | | month's worth of cash reserves in the form of |
| insurance required. There are two types of zero-down | | | | savings, money market, or other liquid assets are |
| mortgage packages, each with their own requirements. | | | | considered ideal. |
| Types Of Zero-Down Loans | | | | If you choose 80/20 financing with the seller carrying |
| 100% financing, as it names implies, offers complete | | | | the second mortgage, you can qualify with sub-prime |
| financing of your property. The other option, 80/20, | | | | lenders with a score of 560. |
| finances your mortgage with two loans. Both loans | | | | Zero-Down Sub-prime Lenders |
| may be carried by your lender, but sometimes the | | | | You can find zero-down sub-prime mortgages with |
| seller or a second lender is required to carry the 20% | | | | both conventional and niche sub-prime lenders. Make |
| mortgage. | | | | sure that you request quotes from as many mortgage |
| 100% financing is easier to deal with, but not all lenders | | | | lenders has possible to be sure you find the lowest |
| will offer this type of home loan. 80/20 financing is | | | | rate and best terms. |
| more common, but takes some negotiation if the seller | | | | You will also want to decide what type of mortgage |
| is involved. | | | | you want. An ARM is easier to qualify for and has |
| Qualifications For Zero-Down | | | | lower rates. A fixed rate mortgage offers the security |
| Each lender has their own criteria for determining who | | | | of a constant interest rate over the life of your loan. |
| will qualify for a zero-down loan. Most sub-prime | | | | Typically an ARM will be a better deal if you plan to |
| lenders require any bankruptcies or foreclosures to | | | | refinance within a couple of years. After you have |
| have been at least twelve months ago. A conventional | | | | improved your credit history, you can refinance for a |
| loan requires these to be discharged two to four | | | | conventional mortgage with low interest rates. |