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Looking for 100% Financing?

80/20 Split  |  Interest Rate  |  Low Credit  |  Good News  |  Investors

80/20 Split

100% financing is available for refinance or purchase with credit scores dipping as low as 560. Many different programs exist, however an 80/20 loan is most often recommended. 80% of the value is put in a variety of first mortgage packages with the remaining 20% in a fixed rate second mortgage or a line of credit. The major reason for a cutoff at 80% is the ability to avoid mortgage insurance.

Interest Rate

The interest rate is dictated by many factors, but none being more important as your credit score. Three credit bureaus are generally used (Experian, Equifax, and Trans Union) to arrive at the middle score of the three. Typical categories in credit scores that help dictate rates run greater then 720, 719-680, 679-660, and less then 660. As the credit score gets smaller qualified interest rates will move up and there might be additional items needed to qualify. For example there could be a need to show a certain amount of residual income.

Other items that will affect the interest rate include:

  • the loan amount
  • is it cash out on a refinance
  • is this the primary residence, a second home or an investment property
  • is this a 3 or 4 unit building
  • is this a low rise condo
  • does the income have full documentation
  • is it an interest only loan

Low Credit

As the credit score gets down to 580 more rules come into play. How many loans are you currently paying on and the funny thing here is that you usually need at least three. Three is better then none. How long have you had these loans and what are their maximum limits can be important. Also important is the number of previous mortgage lates or rental lates and if you were renting, is it from a private party or a rental company. Also as the credit goes down, the amount of cash reserves you have will go up.

Good News

At America’s Mortgage Store we understand that little things can happen to an individual. The good news is that 100% financing is still available even if:

  • you just became self-employed
  • you have been discharged from a Chapter 7 bankruptcy 2 years ago
  • your income doesn’t quite qualify you
  • you had a foreclosure over 3 years ago
  • you are a first time home buyer
  • your closing costs are a gift from someone else
  • you filed for Chapter 13 one year ago


100% financing is available to investors usually with a credit score of 620 or better.  100% financing is available to investors if they do not qualify with enough income but have a credit score of 680 or better.It is helpful to put in your numbers into our spreadsheet “The Power of Appreciation” to decide if 100% financing is right for you. Use this spreadsheet to determine the possible appreciation and profit from the ownership of your primary residence or your investment property. Of course 100% financing allows you to leverage your finances to the maximum.



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