The short answer? Yes, 100% financing is available! This is a great option for new and repeat buyers alike who want to eliminate the need for a down payment.

This is because many individuals can’t afford the traditional 20% down payment on a home. If you’re buying a $255,000 house, you immediately have to come up with $51,000 just to secure it from other buyers. Instead, the government sponsors 100% financing so that purchasing is more of a possibility for you.

This type of financing is mainly available through no down payment loans. There’s a good chance that you qualify, too. The FHA, USDA, VA, Fannie Mae and Freddie Mac all offer 100% financing when you meet certain criteria. Local credit unions who want to stay competitive in the market may also offer these deals. Before applying for these mortgages, take a look at your credit history and compare lenders against each other to get the best deal.

An alternative to no down payment loans are special programs, assistance, and grants by local and state governments. These will make homeownership more available to you. What’s great is that by combining down payment assistance offers and eligible loans together, you can get 100% financing.

Another option is to use gift funds as a way to supplement your down payment, and this is a common practice if your family has the ability to support your endeavours.

It should be stated that those who can put down on a property should. First of all, no down payment loan programs require MIP (Mortgage Insurance Premiums) that increase your monthly payments. These mortgages also tend to be a riskier investment. Here’s a great example:

If you purchase a $125,000 house with $50,000 down and the value of the property drops to $100,000, you can still sell it with funds to spare. With no down payment, you wouldn’t have had the equity to absorb the loss.