100 Percent Financed Mortgage

[Trey Hedrick]

Hey BP,

My Fiance and I are looking for our first property here in Denver and we are thinking of going the FHA route. We recently were introduced to a 100% Mortgage Package with a Credit Union. My basic understanding of this is that you get one loan for 80% of the purchase price and another loan at a higher interest rate to cover the down payment and closing costs. It seems like a decent way to go for us since we dont quite have the downpayment saved, but really want to get started ASAP in investing. Any suggestions on this type of loan vs FHA and the possible benefits/drawbacks of doing 100% Mortgage packages would be great!

Thanks so much and hope everyone is doing well! 

Trey Hedrick

[Dawn Brenengen]

@Trey Hedrick  I'll probably catch some flack for this, but I think it's a good plan.  I did this for my first home and just really focused on paying off the 20% portion.  I still have that home and use it as a rental now. I would only do this if your jobs are very stable and you are not overextending yourself with payments.