What is a No-Down Home Loan?

Sometimes referred to as a zero down home loan, the no-down home loan provides a means of financing the purchase of a home when there is not cash on hand to provide a down payment. While more difficult to obtain than a traditional mortgage loan arrangement, the no-down home loan is an option that often works well in a housing market that is very expensive. The main benefit of a no-down home loan is the ability to qualify for mortgages without the need to make down payments. Many traditional mortgages require that the prospective owner put down a cash amount that is a fixed percentage of the purchase price. Depending on the location, this percentage can be anywhere between five and twenty percent. This would mean that someone attempting to purchase a home in the United States that has a purchase price of $500,000.00 US Dollars (USD) would need to supply a down payment of up to $100,000.00 USD in order to qualify for the loan. With a no-down home loan, this obstacle is effectively ...  more