The 100% mortgage was primarily designed for the people with very good credit and good employment but have not the opportunity to save enough money for the typical down payment. Another reason is that some people have the money in savings but for many good reasons do not want to put their liquid cash into a house at this time. This type of mortgage allows people to have a cash reserve for those little bundles like you see above.

The most common 100% mortgage product is the 80/20 loan. This loan is an 80% first mortgage and a 20% second mortgage or line of credit. Doing the mortgage in this manner lets you eliminate MIP or Mortgage Insurance.

Another type of Zero down loan is the Government sponsored VA loan. This loan is for eligible veterans only but is a very good loan for those with good credit, good employment but have no down payment saved at this time. The rates are also some of the best available.

There are now mortgage loans with 100% financing for non-owner investment properties too.

There is another type of 100% mortgage recently announced by the NASD. (National Association of Securities Directory.) This 100% loan allows the borrower to pledge stocks, bonds, mutual funds and other securities as a down payment. The big advantage to this is the selling cost savings and future appreciation, if any in the securities. For more information click here for a link to their information site.  Click Here