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No money down purchases are great when housing prices are appreciating. You need the right home mortgage broker for this. Here's a great article on the subject.

Today more and more borrowers opt for No Money Down Purchases. And more and more lenders are creating programs specifically for this purpose.

A No Money Down purchase is where a borrower receives 100% financing for the purchase of a home. This can be in one loan, or in a combination of two loans (a first mortgage and second mortgage or HELOC) so the borrower does not have to make any down payment.

Some things to know about No Money Down Purchases:

* Many people opt to purchase with no money down even though they have adequate reserves to cover a down payment if they chose to do so. With interest rates as low as they have been, it often makes more sense to borrower the money at a low rate, and you use cash to pay off other bills or spend on something with a higher return. Also, interest on a mortgage is generally tax deductible.

* Even though you are not making any down payment, there still will probably be closing costs that you may be obligated to pay. To avoid paying some or all of the closing costs, you may want to consider asking for seller concessions. If seller concessions are allowed, the person selling you the home can pay for some or all of your closing costs. With concessions and the right loan program, it may be possible to go to the closing table and buy your home with no money out of your pocket!

* A conventional second mortgage or Home Equity Line of Credit (HELOC) can be used along with a first mortgage to potentially reduce total monthly mortgage payments (as opposed to one loan for 100%) and prevent the need for mortgage insurance.

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