Are There Still 100% Mortgage Loans Available?

The answer is yes. With the tightening of lending rules and the vanishing of sub-prime loans most borrowers and buyers are under the impression that they must have large down payment to purchase a home.

There are still three mortgage products available that will allow someone to purchase a home with little to no money out of their pockets. Although these products are 100% financing sometimes the borrower may have to come up with a few hundred dollars to help on closing costs, sometimes.

VA Loan

 The first product is a VA loan. This loan is for Veterans and their surviving spouse. With a VA loan there is no down payment required and no PMI insurance needed. You will need a Certificate of Eligibility to qualify for a VA Mortgage.

The VA loan will allow up 103.15% of financing available to purchase or reasonable value of the home. If you are a Veteran, this should be your mortgage of choice.

I have included the the link to The United States Department of Veterans Affairs.


The second product is USDA Rural Development loan. Once again there is now down payment required and no mortgage insurance (PMI) required. Closing cost can also be financed into the loan.

This loan will have  income caps that varies in areas, but offers flexible credit and expanded quality ratios. Loan is on a 30 year fixed, no maximum purchase price limit, repairs and improvements can be included into the loan. 

This loan will only work in rural areas. Rural areas are open country and with a population of 10,000 or less. Under certain conditions: towns and cities with population 10,000 to 25,000.

Here is the link to USDA, where you can gather more information and find out if the area you are interested in falls in the rural area.

Utah Housing  

The third mortgage product that is available here in Utah is provided by Utah Housing. This loan is available for first time home buyers or if you haven’t owned a home in the past three years.

The first mortgage is an FHA loan that will loan up to 97% of the purchase price or appraised value which ever is the lowest one. Utah Housing will come in with the second loan for up to 6%. This second will cover the 3% down and 3% towards the borrowers closing cost.

The borrower(s) must have mid-score of 660 or higher. There are income restriction and dept-to-income ratio that must be met. Over all, this is a great mortgage for someone just starting out with little money.

Here I have provided the Utah Housing web site where you can see what today’s rate is and more information about Utah Housing Loans.

Where there you have it, 100% financing mortgages are still alive and well.

Todd  Rodocker  specializes with first time home buyers, seasoned buyers and investors.  He can be contacted at, cell 801-694-0903  or by visiting his web sites,  


About toddrodocker

Todd Rodocker Realty Group is Premier Real Estate Agent and Loan Originator in Utah and promotes Home Ownership to everyone. Todd Rodocker Realty Group is partner with Aubrey & Associates Realty and Altius Mortgage. NMLS 317650
This entry was posted in Buyers, For Realty Professionals, Mortgage. Bookmark the permalink.

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