| With the number of home purchase financing options | | | | learn if FHA loans can fit your need for 100% financed |
| decreasing daily, buying the house of your dreams is | | | | purchase. |
| becoming even more difficult. In years past, a buyer | | | | Even though purchasing a home with a 100% financing |
| could finance the purchase of a home with several | | | | loan are good for those that don't have money for a |
| programs offering low down payment options. Today | | | | down payment, it is also important to be aware of the |
| with loan underwriting guidelines becoming more | | | | risks. With the fluctuation of real estate prices, it is |
| stringent, most conventional home loan programs | | | | important to understand that if home prices are |
| require at least a 10% down payment. | | | | declining, buying a home with 100% financing may |
| Although median home prices have generally | | | | cause a homeowner to owe more on the loan than |
| decreased nationwide making homes more affordable, | | | | the home is worth. When purchasing homes with 100% |
| many people do not have the amount of money | | | | financing loans, it may be necessary for the |
| required to cover these new down payment | | | | homeowner to stay in the home for several years if |
| requirements. With the current state of the economy, | | | | housing prices are in decline. If the homeowner tries to |
| have these people lost their chance at having the | | | | sell the property when owing more on the mortgage |
| American Dream of home ownership? | | | | than the home is worth, the homeowner with 100% |
| Many people are now revisiting a once more popular | | | | financing may be forced into foreclosure. |
| option for financing their home purchase. The Federal | | | | As long as the home buyer understands the risk |
| Housing Administration has a program that gives home | | | | involved with 100% financing loans, these programs are |
| buyers an option to still purchase a home with little or | | | | excellent for those people with low cash reserves and |
| no money out of pocket. FHA loans can still offer a | | | | cannot come up with the initial down payment of 10% |
| home buyer an option for 100% financing. Because of | | | | to 20%. Alternatively, if the home buyer qualifies for a |
| the few existing alternative for 100% financing, FHA | | | | 100% financing loan program and the buyer does have |
| loans are becoming more popular and drawing | | | | cash reserves, using 100% financing with keep the |
| attention of people towards them due to zero down | | | | buyer's money in the bank making it available for future |
| payment options. There are very few or no | | | | use. 100% loan financing option can be more cost |
| alternatives for those seeking 100% financing. Because | | | | effective for many buyers and still allowing them to |
| not all lenders are approved to take advantage of | | | | buy the home of their dreams. |
| FHA loans, it is important to speak with a specialist to | | | | |