Definition of a 100 Percent Mortgage

A 100 percent mortgage is a loan that covers the full price of a property. This type of loan is given to borrowers who do not have the money for a down payment.

Typically mortgages cover only 80 percent of the property value. Most banks will not risk offering a 100 percent mortgage because they are risky, since the borrower is not making an investment. Sometimes borrowers can combine lenders can create full coverage of the price of the property by borrowing 80 percent from one lender and 20 percent from another.

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