If you are still renting your home there are many programs to get you into a place of your own even if you lack the necessary down payment. In todays mortgage market place most mortgage lenders offer no money down programs. If you are not careful in choosing the right loan program it is easy to overpay for the financing. Here are tips to help you find the right no money down mortgage for your financial situation.

There are advantages to no money down mortgage loans. The main advantage is that you do not have to supply a down payment. For many families on tight budgets saving the necessary 20% down payment can prevent them from qualifying for traditional mortgage financing. With a 100% mortgage loan a down payment is not required. The bad news is these mortgages come with higher interest rates than traditional mortgages. Having good credit is not a requirement for this type of mortgage financing; however, it helps to have decent credit. There are 100 percent mortgage loans available for every credit rating; you will just pay different amounts for the financing.

100 percent financing comes in several different flavors. There are 103 percent loans to cover the cost of closing, and 107 percent loans to allow cash back for repairs or furnishings. The more you borrow the better your credit needs to be. Homeowners asking for 107 percent mortgages should have a credit score in the neighborhood of 650.

You can learn more about your 100% mortgage options including common mistakes to avoid by registering for a free mortgage guidebook: Five Things You Need to Know Before Refinancing Your Mortgage.