What Does "100% Financing" mean?

You probably have heard the term 100% financing available. But... What does that really say?  

When lenders talk about the loan to value (LTV) they are talking about what percent of the sales price or value would you be borrowing?  If you had a home that valued at $100,000, and you wanted a loan for $80,000 you would be borrowing 80% LTV.

If 100% financing is available and, you qualify you would have a loan for the total sales price of your home.  

You as the home buyer would not have to put any money down, but you could have to bring in closing cost and prepaids.  One way to get around not needing to bring money in for your closing cost and prepaids is to negotiate with the sellers and see if they will pay for them.  

What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 30 years. Visit her other mortgage web sites go to www.shirleynault.com #firsttimehomebuyer #newhome #mortgageloanfinancing #utahsmortgageloans