can i get a 100% mortgage?
I am only earning 14k right now, but I get big pay rise for each exam I pass, what are my chances of a 100% mortgage?
- 1 decade agoFavorite Answer
You have to get an %80 and %20 loan but it is a bad idea. Because it has caused so many problems for homeowners it is becoming harder for people to get such loans. Countrywide is really big on giving out loans like these or least was in the past but they are getting a lot of ridicule for it now.
- frankieLv 41 decade ago
You have obviously had your head in the sand for the last few months the mortgage market has gone into free-fall and the chances of a 100% mortgage now are as rare as hens teeth.
You will probably need at least 10% to 25% deposit before any company will touch you and we are also back to about 3.5 times salary so you would need to find a really cheap home or apartment to stand a chance of getting in the property ownership structure.
This seems hard but blame America they lent money to thousands of people that were never going to be able to pay it back and it all went pear shaped.
Northern Rock carried the largest part of the fall in the UK so you and I are now bailing out yet another useless company that should have been allowed to go to the wall beacuse they could not run their business properly and took too many risks in persuit of profits.
Sad but true I wish you luck but I am not sure that you will get what you seek for a few years yet, sorry.
- HeisenbergLv 71 decade ago
I'm sure you could get a mortgage but, considering your salary is very low, it would be a good idea that you don't.
typically speaking, you'll want to have 10% - 20% for a deposit to offset the impact of points. Additionally, you'll want to make sure that monthly mortgage payments do not exceed 50% of your salary.
Once that's sorted away, you need to determine how much taxes and house insurance is going to cost you as well heating and maintaining both the house and the property.
Some say that each $100,000 you have in mortgage will cost you $1000 a month in payments. So if you were to have a $300,000 mortgage which might include rennovation of the property to fix legacy issues prior to moving in, etc, would cost you $3000 + property maintenance + taxes + insurance + electricity + heat and hot water.
To put that into context, in order to be able to afford that $300,000 mortgage and life an acceptable life, you will need to earn a small fortune.
- 1 decade ago
Well, with the ecnomy right now it is really difficult. Most programs request 10% down, and with 14K is kind of hard to get you approve 100%. In order to even be consider for 3% down payment you'll have to do a full doc loan (show all your income) and in order to do that you might have to get a house that the mortgage (with taxes and ins.) pays around $600 a month. Do you hve another job?
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- Eddy TLv 71 decade ago
A bank may consider a 100% mortgage for people who can pay their monthly instalment out of their current salary or 1/3 of their monthly salary.
Also pay rise is not a good consideration to give you a 100% mortgage. But if you can proof that you have other financial means to ensure that the monthly instalments can be promptly paid or a guarantee, they may consider your request.
- Antwan DUBBA ULv 51 decade ago
Its not going to be based on your income. Right now with the way the market is the chances of finding any decent 100% ffinancing is slim to none. You might be able to find it, but it will be with a subprime lender and probably a rate of around 8-10% You dont want 100% financing right now anyway, the property values are not going up so 100% makes no sence right now,
- autumnLv 51 decade ago
I bought my house 2 years ago w/ 100% financing (we had an 80 - 20) To get a loan like that depends on your credit score, not your income. More or less - your income will determine how much you can spend ona house and your credit will determine the kind of loan you can get.Source(s): former mortgage processor
- 1 decade ago
Try spml (southern pacific mortgages)
I got a 100% mortgage with them on a self cert basis which ment I didn't have to prove how much I earn
- Anonymous1 decade ago
I'm sure you can but theres usually a catch. Make sure you don't get locked into a high interest rate. It could end up costing you a LOT more.