The first thing that comes to my mind when I heard zero down mortgage was it will take a while to get some equity and you start out with private mortgage insurance also known as PMI. PMI alone can add thousands of dollars to your homeownership costs over the first couple of years of homeownership. Is there even an advantage? Someone else might say you can qualify for a bigger mortgage. I say, why would you want to do that. This to me would be biting off more than you can chew. There is no need to overextend yourself. If you are not fully prepared for a zero down mortgage, I would think this would get you one step to foreclosure before you even get in the house. You might not be able to afford the monthly payments after the interest only period.
