Can I get a mortgage with no money down and excellent credit score?

Can I get a mortgage loan with a good interest rate, and a excellent
credit score with no money down. Thanks for the help.

tosa
Additional Details
So you dont really need a down payment with a score of like 800

yes, you can get a mortgage with no money down and excellent credit... however it really depends on your debt to income ratio. if the lender doesn't think that you will be able to pay your mortage payment then of course they will not approve you. your debt to income ratio should be about 45%... so you really need to provide more information. i have learned that anything is possible in real estate, but everything is a case by case situation.

Anyone with an excellent credit score and a Debt to Income Ratio of 45% or less will do just fine in getting a loan.

Check out this site they have information on 100% financing, a short video "9 Steps to Home Ownership" and much more....

http://www.firstmeridiancapital.com/100%Financing

It helps to have a free appraisal, which they are willing to pay for.

Absolutely. There are many ways to structure 100% financing. The best way is to do an 80/20 piggy back mortgage so you avoid mortgage insurance.
http://www.lendermark.com/8020_mortgage.htm

Are you kidding - you will be hounded for your business. Congratulations on having a Impressive Credit Score - Some things to Consider when you buy a home.

With your credit = you could qualify for a 103, 107 ltv - What that means if you needed 100,000 your could get 103,000 to 107,000 loan amount to cover closing cost etc.

1 loan with your credit will be roughly 6.88 rate with no MI - with 1 lender I know of - possibly 7.0 with rates going up (this is an estimate only ok. Some company's will try a 80/20 to get you at the 100 percent financing - so you will not have MI - What is this you wonder?

MI is Mortage Insurance, this insurance is for the Lender. It is not Home Owner Insurance that you get on your home. This insurance insures the lender that if you do not pay for your mortgage, the insurance covers the loss.
FHA loans have MI included, Conforming A+ borrower's loans have MI included, but the rates are better starting in the mid to high 6's (with rates going up.) The more money you borrow - the higher the rate normally. There are alot of factors involved. The rate I quoted you (the 6.88) has the MI in the rate. That gets you away from having 2 payments, the rate is good, and not a 80/20 (2 payments). Look into a fixed rate, 30 yr - or 20 yr - even a 40 or 50 yr if you need it. If you work with a Broker, he/she can submitt your loan and rate shop for you, using his credit - that has only been pulled once. You may even want to talk to your bank and see what they offer you.

There are many programs out there, this is just a few - ok. There are interest only loans, pick-a-payment programs, where you have the option of 4 payments)

With all loans, the seller will have some out of pocket expenses (unforuntally)
1. The appraisal has to be paid up front, at the door. Appraisers will take a Check / Credit Card Payment. Some will work with your lender and collect at the door, but only if the person is serious, and signs that he/she is resonsible for the appraisal, if they back out.

2. You will need to bring in a Home Owners Insurance Binder, of coverage for your home purchase. Some lenders wants to see the first year paid. This insures them that you can # 1 afford it, and that # 2 their investment to you is covered with insurance.

Other things to consider.

Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information.

The answer to your question is SIMPLY put YES YOU CAN!! but of course it takes more than just your fico score to really tell you what interest rate you qualify for or what loan you qualify for.

The only drawback of getting a 100%, as others already mentioned, is that your interest rate will not be as good as if you would have put down something for the down payment. If you dont have the money for the downpayment, make sure you have at least enough for the closing cost and some reserves in your bank account.

Good luck

Sure, FHA and VA loans (if you are a vetran) exists for first time homebuyers and no / low money down lenders. Just realize you may get in for little down but your mortgage will cost more on a monthly basis. To mitigate the risk to the lender, you will be paying for Mortgage Insurance that protects the lender (not you) for the possibility of a foreclosure down the road. The mortgage insurance is scaled to the size of your mortgage. A good example of Mortgage insurance premiums on $130,000.00 mortgage in Indiana breaks your payment down as follows:

Principal Interest: $679.00 month
Escrow(taxes/insurance) $245.00 month
Mortgage Insurance $65.00 month

Total payment $989.00 month.

Before jumping into the no money down game, think about being patient, saving that 20% and trying to slide into a conventional uninsured loan.

80/20 piggy back loans are risky and I would avoid. This is a shell game and I do not advise you play it.

Hope this helps

of course you need to shop for one

There's a mortgage for everything. You can get two mortgages like a 80/20. But the better you look in the eyes of a bank the better they'll treat you (rate and terms). With a credit score above 720 you can get a loan just on your SS#, name, address. It's called a no doc loan and they'll take your great history as your only asset and rate you against that alone.

There's always money to lend. And Real estate is one of the safest investments for a bank so they're more lenient because the house is the main collatteral in every loan.

i got one for my first mortage, there was no money down but the closing costs are still alot of money

With an 800 credit score, you can get almost anything you want! As long as the payments fit your debt-to-income ratio (and with a very high credit score, you can push the limits there a bit) you will qualify. An 80/20 will allow you to avoid mortgage insurance. Your rates will be higher, but if you're in an appreciating market, you can always refi in a year or so.

Yes you can get 100% financing but the rate will be slightly higher than if you had a minimum down payment.

Remember, even though you will not have a down payment, there are still closing costs to pay although there are program that will finance up to 6% of those and a motivated seller can also contribute a small amount towards your costs as well.

In order to access the most competitive interest rates you would only need about 3% of the sales price for a down payment and that can come from a gift from a family member, a secured loan, sale of an asset upon which you can document the value and transaction, or a grant from a nonprofit home buyer's assistance program.

Call your local Mortgage Companies. Yes, you can get a mortgage.

of course! you just need to talk to a mortgage advisor/loan officer and explore the options available.

also, be sure to choose a realtor to work with!!!

YES!!! You can get anything you want with a great credit score!!! The rates really depend on what you want to do. Brokers are set up to find these deals for you. Just make sure that you do not get taken advantage of in the process. If you have a great score your closing cost should not be that high. Also you want to make sure you are really getting the lowest rate you qualify for. Ask the broker if they are getting paid by the lender also. If they are you are getting a higher rate then you qualify for. You can email me if you want to ask more questions.

Uh, YEAH.

In this market, you don't even need to have an excellent credit score.

AND, you may not even have to pay your closing costs, if you can get a sellers concession!

HOWEVER, you will NOT get the best rates when you do 100% financing. Think about it... you are not putting any of your own money into a very expensive investment. Who's to say that you won't just walk away from it when the going gets tough? So, the investors calculate that risk into higher rates.

If home buying becomes any easier, lots of us in the business will be out of jobs! LOL!

yes you can, you will have to pay more per month and have a longer amortization. this will kill you on interest as you are not paying very much on the principal for the first several years.
I believe it also cost you more in closing costs as well.
Ideally you want between 5 and 10% down this makes all the other financial aspects easier to carry.
However if you must go without a down payment, you are able to.
Here is a good trick, If you really do have a great credit score get a line of credit. begin transferring money from line of credit to bank account, dont touch your bank money.
keep paying back line of credit, and transferring.
Before you know it you have your 5% and are paying MUCH less interest as a line of credit interest rate is way lower.

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