mortgage for bad credit

Subprime lenders offer financing with zero down. Interest rates are higher on these types of loans, but they make purchasing a house easier. And unlike a conventional loan, there is no private mortgage insurance required. There are two types of zero-down mortgage packages, each with their own requirements.

Types of Zero-Down Loans

100% financing, as the name implies, offers complete financing of your property. The other option, 80/20, finances your mortgage with two loans. Both loans may be from your lender, but sometimes the seller or a second lender is obligated to the 20% mortgage.

100% financing is easier to handle, but not all lenders will be these types of loans. 80/20 financing is more common, but takes some negotiation if the seller is.

Qualifications for the Zero-Down

Each lender has its own criteria for determining, for a zero-down loans. Most sub-prime lenders require Foreclosure or bankruptcy have been at least twelve months. A conventional loan requires these to two to four years.

While a credit score of 600 or higher is best, large cash reserves can also qualify you. Six to twelve months worth of cash reserves in the form of savings, money market, or other liquid assets are considered ideal.

If you 80/20 financing with the seller, the second mortgage, you can qualify with sub-prime lenders with a score of 560th

Zero-Down Subprime Lenders

Here you can find zero-down sub-prime mortgages with conventional and niche sub-prime lenders. Make sure that the offers from so many mortgage lenders has possible to be sure you find the lowest and best conditions.

It will also decide which type of mortgage you want. An arm is easier to qualify and lower prices. A fixed rate mortgage offers the security of a constant interest rate over the entire duration of your loan.

Typically an ARM will be a better deal if you are used to refinance in a few years. Once you have your credit history, you can refinance for a conventional mortgage with low interest rates.