100 Percent Purchase Loans

The 100 percent purchase loan can be an adjustable rate mortgage (ARM) or a fixed rate, and covers 100 percent of the appraised value of the home.  The premium for private mortgage insurance (PMI) will be much higher because of the increased risk to the lender.

You must have a credit score over 680, money to cover the closing costs, and six months of house payments, in order to qualify for this home loan.

There is also a premium of up to 1.5 percent or higher added to the interest rate.