How Do You Qualify For A No-Down Payment Mortgage?
The real estate industry has changed by leaps and bounds in the last decade or two. It is so much easier to purchase a home mainly because it has become easier to acquire a mortgage with no down payment. You must have a good income to debt ratio. The main reason for this is that your mortgage payment will be considerably higher with this type of loan. You will be borrowing a larger amount of money and paying for private mortgage insurance that is usually a percentage of your loan divided over the term of the loan. On a home that costs $150,000 this can be over $200 extra per month. The lender will want to know that you have the proper income to cover all of these extra costs. You will also need an excellent credit rating. No down payment mortgages are a larger risk to lenders and they will want to be as sure as they can be that you will not default on the loan. Foreclosure will help them recoup some of the costs, but they will still lose money if it comes down to a foreclosure. Lenders
