2006-08-15 00:10:28 · 5 answers · asked by Amanda B 1 in Business & Finance ➔ Credit
100% financing will be a never ending nightmare. If you qualify for this product, the income required is astrinomical. If your mortgage payment, taxes and insurance total $2000 monthly, and you have no other debt you would have to fully document $6000+ in income a month. A $2000 a month payment for 100% financing would give you a purchase price of about $150,000.
If you earn $6000 a month and have no debt it should be no problem to save $4000 a month. You could have 20% down saves in less then a year. 100% financing seems like the best thing on earth. Trust me it is very hard to go from renter to homeowner, I have a monthly income of $10,000 a month and cannot figure out with a mortgage of $1500 where the rest of my income is spent. I have utilities that average $300, HOA dues of $300, unforseen disaster at least 1x a month. You dont have the luxury of calling someone to fix it for you unless you have CASH on hand to pay for the repair. PLaces like Sears and Home Depot make a fortune since they can provide credit cards you can use, and they know you will use it each time an emergency arises. Dont get in over your head, I borrowed 80%, have reasonable income, little debt, and instead of borrowing more money I am going to rent out a room to help cover some of the costs associated with being a home owner.
2006-08-15 05:48:39 · answer #1 · answered by Jacque w 3 · 0⤊ 0⤋
I understand 100% financing to be that you dont need a deposit & that a finance company will lend you 100% of your required amount. A good credit rating is always best, but not necessarily a necessity, especially if the finance company have high interest rates & they're bottom line is to gain profit profit profit.
I'd be giving the finance company a call just to confirm & don't hang up until you fully understand what you have been told. Good luck :o)
2006-08-15 07:30:45 · answer #2 · answered by Mrs D 6 · 0⤊ 0⤋
The better the credit, the lower the interest rate and the easier to qualify. 100% financing means no money down so while you are not paying money down, there's no equity (home, car, etc) so the interest rates are higher and the length of time longer. If you cannot afford to raise a downpayment on something that is 100% financed, the odds are you cannot afford the payments. To know if you can afford whatever it is you are seeking, make sure that you can easily make the payment for the item for at least three months (if not six). Put that money into a savings account and if you don't touch that money, you can afford it... and you have a downpayment!!!
2006-08-15 07:16:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
100% financing means that they will cover all of what you want
them to finance, but for this you need to have a good credit, and a stable job. It is also important that what you want is worth what the person is charging you, because if the bank doesn't think so it will not finance it fully.
2006-08-15 09:00:25 · answer #4 · answered by blackturmaline 2 · 0⤊ 0⤋
Good credit is a must. I used it twice on homes I purchased, through the Veteran's Administration(VA loan). A 100% loan means it costs nothing but incidental fees to get the loan, closing fees, lawyers fees, etc. I even borried money for this on the first loan and had that added to the total loan amount since I had no extra savings at the time to use as a down payment on the loan. Good luck on finding one.
...jj
2006-08-15 07:19:56 · answer #5 · answered by johnny j 4 · 0⤊ 0⤋