100 percent financed mortgage, how does it work?

I would like to know what type of credit score you would need to qulify for a 100 percnt financed mortgage.Also how much income is required. Does anyone know what mortgage payments would be on a house that is $229,000 to $249,000?How do you go about getting something like that. Are companies you see advertised to get you a mortgage like that with bad credit reliable, or will banks give you a mortgage like this.

Update:

I live in Toronto,Ontario and would like advice for this and surrounding areas.

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  • 1 decade ago
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    Some people may actually get 100% financing, others get 80-20 loan, 80% first mortgage and 20% at a lil higher rate. You should have atleast a 640 beacon score but higher is always better. Countrywide is great for this. You can expect a mortgage payment around $1400-$1600 a month not including your taxes and insurance.

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  • Anonymous
    1 decade ago

    Typically, you will need a credit score of 660 or above to get 100% financing these days. There are still sub prime/non prime lenders out there that will provide financing at 100% utilizing 80% on the first mortgage and a 20% second, but the rate is higher. FHA also offers financing at much lower rates, and they typically don't rely as heavily of the actual credit score.

    Most non prime lenders have tightened up their guidelines after the losses they incurred on lending to borrowers with lower credit scores such as 560-580 at 100% financing and realizing those borrowers had an inability to pay resulting in foreclosure.

    The income required for 100% financing depends on the rate and payment, as these two items will reflect what your debt to income ratios or ability to pay will be. I would suggest consulting a local bank or mortgage broker to get an actual quote with your specific information. They can also tell you if you qualify for an FHA loan which may be your best bet.

    Good luck with everything. I hope it works out for you.

    http://www.achievablemortgages.com/...

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  • 1 decade ago

    As an agent I recommend not going this route as with increasing interest rates it will be an expensive option. Also your credit score comes into play as banks are tightening there lending criteria. Your mortgage could be as low as $1,400, but as high as $2,500. A lot of what if's, the first step is to figure out if you can afford a home, the insurance, maintenance, yearly taxes, and still have enough income for your other debts.

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  • 1 decade ago

    The credit score is going to be less important than what your income level is, and how easy it will be for you to service the loan. I would start by looking at www.bestmortgageanswers.info

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  • 4 years ago

    In some components there are nevertheless financial agencies which will mortgage one hundred% of the fairness in a assets. you will possibly desire to disguise all different expenses. you will might desire to seek for them and be arranged for probable larger expenses of pastime (some finance agencies do have stable expenses).

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  • Anonymous
    1 decade ago

    bad idea.

    put 20% down, get a 15 year fixed rate loan that is less than 25% of your household gross salery per month or don't do it.

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