NEW YORK (MainStreet) - No money down mortgages? Do those still exist? In the wake of the financial crisis of 2008 and the collapse of the housing bubble, a lot of people think that the no money down mortgage has gone the way of the dinosaur. However, while these types of products are rarer than they were throughout the last decade, they can still be found. The no money down or 100% mortgage is a double-edged sword: on the one hand, it can allow people in expensive markets to get their foot in the door. On the other hand, they often come with very high fees and interest rates. So how can you know if a no money down mortgage is right for you and your family?
Where Are the No Money Down Mortgages?
Mike Sullivan, director of education with Take Charge America, points out that there are a number of no money down mortgages specifically targeted for niche groups of Americans.
"VA mortgages often require no down payment, but there's still a funding fee of 2 or 3%," he says. That fee has to be paid in advance, so that constitutes a sort of down payment in and of itself. What's more, Sullivan points out a U.S. Department of Agriculture program that offers rural housing at no money down. "This can be an attractive option for people who have no cash," he says, adding that you can't get that loan anywhere, but you can get it more places than you might think -- some suburban areas are considered "rural" by USDA.