A guest post from Sandy T

Is it possible to get a mortgage without any down payment?

Nowadays, you can get a mortgage without making a down payment. These mortgages are also commonly known as 100% mortgages or 100% loans. No or low down payment loans need small or no cash from the borrowers at the time of closing.
About 20 years back, the average down payment for a home loan was 20%. At present, people can qualify for mortgages even by making a down payment of as low as 4%. To be precise, a 0% or no down payment mortgage is a loan for which you don’t need to make any down payment at the time of buying a home. In today’s mortgage market, getting a no down payment home loan might be quite hard unless you have an excellent credit score. If you’re a veteran, you can qualify for a VA (Veterans Administration) loan with a somewhat lower credit score.  Mortgage rates for these loans are usually higher than other types of conventional loans.
No down payment loans for veterans are always a secure option for both borrowers and lenders.
Should you go for a 0% down loan only since you can?
Not essentially. Given below are reasons that should be taken into consideration prior to taking out a 0% down loan:
    You’re more probable to lose your home.
    No down payment signifies a smaller home.
    You need to make higher monthly payments.
    It’s difficult to qualify for these loans.
    Very few lenders offer these loans.
    No money down loans require you to buy private mortgage insurance (PMI).

Underwriting prerequisites for 0% down loans

Usually, the underwriting prerequisites for these loans include the following:

    All borrowers should live in the property
    A minimum credit score of 660 with no late payments mentioned in the past 12 months.
    Maximum amount of loan is $417,000, though many lenders are providing 0% down jumbo mortgage products
    Only 1-2 unit primary residence. Includes sanctioned PUDs (Planned Unit Developments) and condominiums. Investment property is not allowed for 0% down payment loans.
    No foreclosure or bankruptcy within 7 years of closing.
    Your debt to income ratios must not surpass 45% of your income.
    You don’t have to be a first-time home buyer.

You should go for a 0% down loan only if you have good credit and you’re confident about repaying the loan on time.

I would like to thank Sandy for her contribution to my blog Keep up the good work