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Are 100% mortgages a bad idea?

By
Real Estate Agent with ZOOM Realty Group

Are 100% mortgages a bad idea?

 

When my husband and I bought our first house 40 years ago, the only way we could manage it was with a VA loan (100%). At the time we were in an apartment and needed more space so chose to buy a house rather than pay increased rent. That enabled us to build equity and gave us the benefit of the interest deduction on our taxes.

In today's market, things are much different...do you think a 100% loan (such as VA) is risky if the person qualifies. If you had a vet who qualified for a VA loan (100%), would you suggest they consider going FHA instead to minimize the risk?

Are 100% mortgages a bad idea?

 

 

 

 

 

Posted by

Diana Zaccaro, PA

Broker Associate

"Your Coastal Connection for Cocoa Beach and the Brevard County Beaches"

Direct: 321.537.7855  - DianaZaccaro@gmail.com

 ZOOM Realty Group

  

 

Show All Comments
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Like anything, it depends on who you ask...doesn't sound good to me!

Mar 12, 2018 07:26 AM
Diana Zaccaro Broker Associate
ZOOM Realty Group - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

Kristin Johnston - REALTOR® 

The idea of 100% mortgages in general scares me, too, but I think VA mortgages are actually less risky since the veterans have already demonstrated responsibility and commitment through their service to our country. I wonder what the default rate is on VA loans?

 

Mar 12, 2018 09:44 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I can see it working for some people, but definitely not all in that regard. Interesting post!

Mar 12, 2018 11:14 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Kristin Johnston - REALTOR® I really get where you’re coming from, Kristin! I think you’re a kindred spirit with me in that way.

Mar 12, 2018 11:23 PM
Diana Zaccaro Broker Associate
ZOOM Realty Group - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

Laura Cerrano 

Hi Laura,

Agree...the VA loan worked well for us and we were grateful that we were able to be homeowners instead of renters so never had a late payment.

I was a loan officer and mortgage broker before going into real estate and think that 100% mortgages are right for some of the people some of the time.

Diana

Mar 13, 2018 12:06 PM
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