GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
They might be, depending on your circumstances.
Who Qualifies for Zero-Down Mortgages?
Down payments diminish the amount of principal owed on a mortgage.
Without it, lenders will typically charge higher interest rates to offset the greater monetary risk.
That means larger monthly payments, which can significantly impact your monthly budget and even your long-term financial stability.
This can be risky in a volatile housing market.
Limited Options
Zero-down mortgages are generally unavailable outside of the government-backed programs mentioned above.
This means youll have less choice in the availability of homes and fewer lender options.
Not all properties and financial institutions are eligible for or participate in these programs.
For many people, saving enough money for a down payment can take years.
A zero-down mortgage means fast-track access to homeownership.
Each mortgage payment represents not only the interest youre paying but also goes toward the principal.
More From GOBankingRates
Share This Article:
