ok , what does it mean when a bank offers you 100% financing for a house?

Question

my husband and i are trying to buy a house, our realtor says she found a bank that will do 100% financing what does this mean to us?

Answer 1

They will finance 100% of the cost of the house with no down payment required. Most banks require at least 10-20% as a down payment.

Answer 2

it means that the bank will give you a loan for the full amount of the cost of the house,,,,this is a recent trend, usually they expected you to have about 20% of the value of the house yourself.however some banks work this differently and offer the 100% in 2 seperate loans. Very complicated. You should ask your bank for their policy and terms

Answer 3

It means no down payment for you. It’s good for people who have no saving, and not the best credit you still have to pay the closing fees unless the seller will help you. You will get a loan of 80% in low rate but the 20% will be higher, you have to figure out before you sign with the escrow if you will be able to pay the mortgage.There are taxes and insurance to be paid as well.

Answer 4

most banks who offer those type of loans are not flexible. if you want to be educated on purchasing your first home i would suggest some research starting with this website http://www.scottlushing.com/. he has a ton of information for free and really walked me through the process when i bought my first house.

Answer 5

i believe it means that they will finance the entire cost of the house with no money down,but if you have money down then use it becouse your monthly payment could end up higher without a down payment.

Answer 6

That means you won't have to put any thing down. Its scary. Try to put some down payment to reduce total interest as well monthly pmts.