No Money Down Mortgage Loans | California 100% Financing | Florida No Money Refinancing

No Money Down Mortgage Loans

Getting a mortgage loan with no money down may seem like a by-gone fad of the housing boom, but the practice actually has longer and stronger roots than that. Mortgage loans with no down payment, or "no down mortgage loans" as they are sometimes known in industry shorthand, are part of a tradition that has helped millions of Americans get mortgages.

Get Competing Quotes From Top Mortgage Lenders -- Strict NO SPAM policy, BBB Approved

What type of loan do you need?
Refinance Home Equity Debt Consolidation Home Purchase

In what state is the property located? What is the property type?
- Select One - Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Single Family Residence Multi Family Residence Condominium Mobile Home Manufactured Home

How would you rate your credit?
Excellent Good Fair Poor
All information is encrypted and secure.

While falling home prices, especially in markets like California, may make no down loans tougher to come by, there are still special programs such as FHA loans which are designed to help buyers get a home with little or no down payment on their mortgage loans.

Impacts on the Borrower

A no money down mortgage loan has some impacts on borrowers. One way or another, it is likely to be more expensive. These no down loans are riskier to mortgage lenders, so they may involve a higher interest rate. Alternatively, programs such as FHA mortgage loans provide mortgage insurance which helps reduce the lender's risk, but which comes at the price of a premium paid by the borrower.

Borrowers should also accept that with a no down loan, it will take them longer to build equity in the home, and monthly payments will by higher than if there had been a down payment.

What to Consider With a No Money Down Mortgage Loan

While no money down mortgage loans involve little or no initial investment on the part of the borrower, they are not totally risk-free. The borrower's credit rating is at stake. A no money down mortgage loan should not be used as a way into a house the person can't afford. However, if a person budgets carefully for the monthly payments, a mortgage loan with no down payment may be the quickest path to home ownership.

California No Money Down Mortgage Loans

California mortgage loans with little or no money down are much more difficult to obtain than they used to be. With the recent shakedown in the mortgage industry and lenders tightening their lending criteria. However, FHA loans are one way to obtain a no money down home loan. FHA loans were originally for first time home buyers and the loan amount was set relatively low, especially for California real estate prices. With the economic downturn, the FHA loan amount has been raised, giving many more Californians the ability to qualify for an fha loan. (This article was written in May, 2008)