The Real Estate Weblog

Here is some interesting facts that you may not know about nothing down loans. Some Sub-prime lenders now offer certain
                    financing packages with nothing down. Interest rates are higher
                    on these types of loans, yet they make purchasing a house
                    much easier. And unlike a regular loan, there is no private
                    mortgage insurance which is madatory! There are essentially 2 specific kinds of these 0-down
                    mortgage packages, and each has their own particular requirements.
                  
                  One hundred percent  financing, as the names indicates, offers total financing. The other option, 80/20, finances your mortgage
                    with 2 individual loans. Both loans might be carried by your lender, 
                    yet in some cases the seller or a 2nd lender is needed.
                  100% financing is much easier in general, yet not all lenders
                    will offer this type of loan. 80/20 financing is much more 
                    standard, yet takes some negotiation if the seller happens to be involved in the process.
                 In terms of the qualifications, each particular lender has their own criteria for determining who will
                    qualify for such a nothing-down type of loan. The vast majority of sub-prime lenders mandate that
                    any bankruptcies or foreclosures to have been at least a year old. A conventional loan also mandates these to be discharged
                    two to four years previosuly
                  And while a credit score of 600 or higher is ideal as a very general rule, substantial cash
                    reserves may also serve to qualify you. 6/12 month’s worth
                    of cash reserves are considered the ideal here.
                  If you do decide to go with 80/20 financing with the seller carrying the
                    second mortgage, you may qualify with sub-prime lenders with
                    a score of 560.