If the only thing standing between you and a new front door is a massive down payment, you aren’t alone.
At Rolwes Company, we talk with buyers across the St. Louis region all the time who can easily handle a monthly payment, have a steady income, and are ready for a new home, but have not had the chance to build up enough savings for a large down payment.
That is where 100% financing changes the game. It’s a powerful tool that helps qualified buyers move forward without a traditional down payment. But what does it actually look like in practice? Let’s break it down – honestly and clearly.
The Quick Summary
- 100% financing means you can finance the full purchase price of the home.
- It isn’t “free.” You will still need some cash for things like closing costs.
- Multiple paths exist. Options like USDA, VA, and specific lender programs offer different ways to reach your 100% financing goals.
- It’s about accessibility. This option is designed to help those ready to buy leap over the “down payment hurdle.”
What 100% Financing Actually Means
In the simplest terms, 100% financing means your loan covers the entire purchase price of your new home.
We prefer the term “100% financing” over “zero down” because it’s more accurate, more transparent, and ultimately more helpful for buyers who are trying to plan wisely for their future. While the home’s purchase price is covered, buying a home still involves transaction costs. Think of it like this: if you’re buying a $485,000 home, the loan covers the full $485,000. But you’ll still need to budget for:
- Earnest Money: The deposit you put down when signing a purchase agreement to cover closing costs and prepaids.
- Closing Costs: Fees associated with finalizing the loan, including lender fees and title-related charges.
- Prepaids: Costs such as homeowners' insurance and property taxes, which are collected upfront at closing.
Why This is a Game-Changer for Buyers
For most of St. Louis families, the issue isn’t the monthly payment, it’s the down payment. Between rent, groceries, and life’s surprises, saving for a huge down payment can feel like running a race where the finish line keeps moving.
100% financing changes the conversation from “maybe in five years” to “what about now?” It opens doors for:
- First-time buyers who are ready for a home but new to saving.
- Current renters who want to build equity instead of paying a landlord.
- Growing families who need to keep their liquid savings for life’s other expenses.
Types of 100% Financing Options
There is not just one path to 100% financing. Depending on the buyer and the loan program, options may include:
- USDA Loans: In eligible rural and suburban areas, these offer qualified buyers a true 100% financing option.
- VA Loans: An important option for eligible military borrowers and veterans that often allows for no down payment.
- Lender-Based Structures: This may include certain FHA first and second mortgage combinations, assistance programs, or other financing arrangements designed to reduce the typical down payment requirement
Frequently Asked Questions
Does 100% financing increase my monthly payment?
It can. With no down payment, the loan amount is higher, which can increase the monthly payment compared with a loan that includes an upfront down payment.
How do I know which option is right for me?
That is where the conversation matters. We help buyers start with the basics, talk through goals, and then connect them with preferred lenders who can review every available path for their specific situation.
Is it harder to qualify for?
It depends on the program. Each has different rules regarding credit scores and debt-to-income ratios. Our preferred lenders can tell you exactly where you stand.
Can I use this for any Rolwes home?
Many of our communities qualify! However, some programs (like USDA) are location-dependent. We can help you find the perfect community that fits your budget.
Start Your Journey with Rolwes Company
At Rolwes Company, we don’t just build houses; we help you find a way home. We incorporate the financing conversation into your home search from day one.
Ready to see what’s possible? Contact us today to explore our St. Louis communities and find out if 100% financing is the key to your new front door.
