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In a market that deals with commercial or residential properties, an increase in the property prices usually does not match the average income of the people who may be interested in buying it. Many people are not in a position to save money for a down payment. There are mortgage companies who prefer their applicants to pay a down payment of at least 5%, in addition to paying closing costs. However, this is an unrealistic expectation and hence many property buyers opt for a, no money down mortgage loan.

Many mortgage companies understand the difficulties people have in making a down payment. Some lenders have created special loan programs that make it possible for borrowers to buy real estate.

There are many options provided for no money down mortgage loans. Some mortgage lenders offer 80/20 loans, which involves offering a mortgage for 80% of the asking price, and also 20% home equity loan for the remaining balance. It is a very useful option as buyers avoid paying private mortgage insurance.

There are mortgage brokers who can be contacted for seeking information on no money down mortgage loans. Brokers have an access to loans offered by private lenders, government programs or sub prime lenders. Different lenders set their own criteria, to meet the qualification for no money down mortgage loans. While some lenders require, good credit history or a no bankrupt status for their clients, there are others who offer the loans to people with less than perfect credit scores.

A person who wishes to buy a house does not require large cash reserves in order to make the purchase. Before mortgage lenders began offering different types of loan programs, those interested in buying a house would have to save money for a down payment.

Some of the factors borrowers need to keep in mind are, no money down mortgage loans, are commonly termed for 100% mortgage financing. Usually, home buyers need to have about 20 percent of the home price to qualify for a mortgage and is beneficial for people with moderate incomes.