The 100% mortgage programs are really popular right now. The 100% mortgage is a loan program which requires no down payment. Therefore, trouble may be brewing.

Now on the surface a 100% mortgage this seems like a great idea. Since most surveys show the number one reason for not buying a home is no down payment, a 100% mortgage allows thousands the opportunity to be home owners. That is the pro for these no down payment loans. Now for the cons.

We are hearing a lot lately about how the subprime lenders are dying due to the default rate inherent in loan programs which are primarily adjustable rate with lax income verification and/or credit requirements. This is where most people who don’t have a subprime loan start nodding off…snoozzzzZZZZ.