100% Financing with a Conventional Mortgage?

[Robert Ashline]

Hey guys, I am working with a realtor in my area and I was talking to her about financing options for a purchase that I'm looking to close on in late summer. I was talking to her about an FHA loan and then she expressed to me that she knew of a mortgage lender that does 100% financing and it is classified as a conventional loan, the only requirement is that I'd need a minimum of a 640 credit score to qualify. Has anyone else heard of such a mortgage loan with a bank? Seemed more like a private lender loan to me rather than a conventional loan through a bank. We briefly spoke on the phone yesterday so I haven't been able to inquire on the subject with her in more detail, but I wanted to ask you guys and see what you thought about it as well.

[Jake Roland]

@Robert Ashline I just closed on a house with buyer clients that used a 100% financing conventional loan. It worked great for my buyers. The way their bank works is the 100% financing is only in specific areas that qualify for the loan program, and/or works with buyers under certain income limits. My buyers that used it also were in the income limits and so they got an extra $500 off of their closing costs, and also with this program all of the closing costs were less than a traditional mortgage which was great. 
Definitely explore the options, and if your loan officer is good they will explain the options well and you will be able to make an educated decision that works best for you!