100% First Home Mortgage Loan: how it works and which to choose.

1. What is the 100% First Home Mortgage

1. What is the 100% First Home Mortgage

The First Home Mortgage offers the opportunity to purchase a property enjoying 100% of the total amount made available by the banking institution.

This type of mortgage differs from the traditional one which usually covers about 80% of the value of the property purchased.

The first home loan is a good opportunity for those who do not have sufficient cash and cash equivalents but, like all loans, the latter is also characterized by a wide range of requirements to obtain it. Remember that applying for a type of mortgage of this kind involves facing higher interest rates than a traditional mortgage.

2. How to get the 100% First Home Mortgage

2. How to get the 100% First Home Mortgage

In addition to the basic documentation, the request for the 100% first home loan application will also have to be associated with the opening of the guarantee and the guarantee of attachment of the debtor’s assets, in the event of default on payment. The attachment of the assets is equal to approximately 20% of the loan granted.

Since the risk of this loan is quite high, the bank will have the right to increase the interest rate and related financial charges applied to the mortgage.

So it is clear that, at the end of the mortgage, the property will cost more than its purchase value.

The request for a 100% First Home Mortgage request must be sent to the National Public Services Committee, which will have the task of managing the various requests according to the possession of the required requisites and the availability of the funds.

Finally, the bank will take care of informing the loan applicants within a maximum of 15 days. If the outcome is positive, the funding will be granted within 30 days.

3. Who can apply for a 100% First Home Mortgage

3. Who can apply for a 100% First Home Mortgage

Very often, those who turn to banks to apply for this type of loan are mainly young married couples who do not have enough money to buy a property. Furthermore, if it is a question of young people under the age of 35, they can enjoy the benefit made available by the First Home Guarantee Fund.

Thanks to the Stability law, even those who are not in possession of the requisites for the 100% first home loan can request money from specialized banking institutions.

The First Home Guarantee Fund offers the possibility to request 50% of the loan to purchase the property up to a maximum of 250,000 USD. The question is also addressed to those who ask for a loan to carry out renovations and to deal with and expenses for an electrical system that guarantees greater energy savings in the apartment.

In addition to young couples, the 100% First Home Mortgage can also be granted to families with a single parent and a dependent child, to independent tenants of public housing and finally to those who have an atypical employment contract.

4. How is the first home loan granted 100%

4. How is the first home loan granted 100%

The loan to purchase the property will be granted after the banking institution has verified the existence of the specific requisites required for the sale, such as: verification of double family income, the permanent contract and verification of any additional guarantees.

5. The Requirements and Limitations to Get a 100% First Home Mortgage

5. The Requirements and Limitations to Get a 100% First Home Mortgage

Those who would like to use the sum of money for restructuring interventions can also enjoy the guarantee of this type of loan.

In this regard, however, only requests in which restructuring interventions are useful in order to increase energy efficiency will be accepted.

Furthermore, the applicant of the application must not be in possession of other houses, with the exception of those which, free of charge, are sold to siblings and parents and for properties derived from succession. Finally, the home for which the loan is requested must not belong to the following cadastral categories: A1, A8 and A9, which constitute luxury properties.

6. What are the banks that grant 100% first home mortgages

6. What are the banks that grant 100% first home mortgages

First of all, it should be noted that, given the high risk of the 100% mortgage loan, few financial institutions make this type of loan available and very often require a wide range of specific requirements. Among the most famous banks that grants the 100% mortgage is Best Lender, which offers the possibility of enjoying a fixed or variable rate for young people under 40.

The Best Lender bank solution is linked to the Guarantee Fund which grants mortgages to buy a house for a maximum loan of 250,000 USD.

As for the Best Lender spreads to be added to the requested loan, they vary according to the economic and credit situation of the borrower.

Another bank that offers this loan is Cream Bank which covers 95% of the cost of the property, adding spreads. The loan is applied at 3.10% for a fixed rate mortgage while 2.95% for a variable rate mortgage. The Lite Bank bank grants a 100% first home mortgage whose spreads increase according to the duration of the mortgage.

7. Banks offering first home mortgages 100% on MutuiOnline.it

7. Banks offering first home mortgages 100% on MutuiOnline.it

As already mentioned above, few banks make loans that cover the amount of an entire property and this is why a special site has been created where you can find a wide range of banking institutions where you can request this type of loan: a fast and guaranteed solution!

Within this online site there are numerous banks that grant the 100% first home loan. 

The following banks comply with the rules of the First Home Guarantee Fund and are characterized by a maximum amount that can be financed. On the contrary, these banks have the possibility to choose the interest rate and related expenses in addition to the percentage on the amount to be applied.

8. How to use MutuiOnline.it to apply for a 100% First Home Mortgage

8. How to use MutuiOnline.it to apply for a 100% First Home Mortgage

On the website, in order to have a view of the mortgage offers with guarantee, you can visit the Consap first home purchase section.

This option will give the possibility to show the customer the mortgage availability provided for according to the area in which it is located and the monthly installment for the type of loan chosen. The loan cannot exceed 100% of the value of the property purchased.

9. Banks that sell 100% first home mortgages: advances 2019

9. Banks that sell 100% first home mortgages: advances 2019

For young people who want to buy their first home, Best Lender offers the Italia Mortgage, which has a maximum limit of 250,000 USD.

Purchasing mortgages have a duration of at least 30 years while mortgages used for renovations are repaid within a maximum of 20 years. As regards the spreads, the three-month USD variable rate mortgage has a spread that ranges from 1.50% while the percentage varies from 2% for the Italian Value Finished Rate mortgage.