100% Mortgage

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DEFINITION of '100% Mortgage'

A mortgage loan in which the borrower receives a loan amount equivalent to the total value of the property to be purchased. In this situation, the borrower does not need to make a down payment to secure the loan.

INVESTOPEDIA EXPLAINS '100% Mortgage'

A 100% mortgage gives an individual with little or no cash the opportunity to purchase a house or a similar property. The loan is usually backed up by securities, such as stocks and bonds, currently owned by the borrower. Two significant drawbacks to the 100% mortgage are higher interest rates and the possibility that the borrower's securities will be liquidated to cover a collateral call.

RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  3. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  4. House Poor

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  5. Home Equity

    The value of ownership built up in a home or property that represents ...
  6. FHA Loan

    A mortgage issued by federally qualified lenders and insured ...
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