Mortgage 101: What is a 100 financing loan?

Posted by Jaymie Tarshis on 8:59 AM with No comments
The term 100 Financing refers to a type of home loan program that allows the borrower to finance 100% of the purchase price of the home into their mortgage.  Not all lenders offer 100 Financing and it's not as common as the typical 80/20 loan but it's certainly a great option out there for borrowers without a down payment or closing costs saved up.


Saving up enough money for a down payment, closing costs, and moving costs can be one of the most difficult steps in buying a home.  It used to be that despite having perfect credit and stable income, a home buyers dream could quickly be crushed due to lack of a down payment.  Now, with lenders offering 100% Financing on home loans this dream can quickly be a reality!  These programs below do not require the home buyer to bring in at money at the time of loan closing, read on to find out if you qualify:

VA Home Loan - The best 100 Financing program available

The VA Home Loan program allows veterans with qualifying income and credit to purchase a primary residence without applying any money down towards the sale price of the home, as long as the sales prices does not exceed the appraised value of the home.

With a VA Loan the borrower has many benefits:

  • No Mortgage Insurance
  • No Down Payment
  • No Prepayment Penalty
  • Low Interest Rates
  • VA Guaranteed Loan
  • Higher Maximum Loan Amounts

USDA Home Loan - Also known as a Rural Housing Loan

The U.S. Department of Agriculture offers a guaranteed loan program that provides home ownership opportunities for Americans nationwide.  Similar to a VA Loan, USDA Loans offers no money down and low interest rates.  This is an excelled product and benefit for those that qualify.

Please note that USDA Loans are designed for rural areas, so not every city or county will qualify for this program.  The USDA also has a cap on the amount of income that one household can make.  To find out if you qualify for a USDA Loan or to find out eligible USDA areas please visit here.  

Government Housing Grants - City & State Programs

Grants and Down Payment Assistance Programs come in many different forms.  Some you have to pay back with minimum payments as low as $50 a month, and some don't require any payback at all.  There can be stipulations like how long you must live in the home for and like the USDA program there are is also a limit on how much money you can make annually.  

There are many different restrictions and guidelines for every City and State Grant Program available.  To find out more information and see if you qualify, please fill out this grant application here.  

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