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What does full financing mean?

What does full financing mean?

A full financing, also known as 100% financing, means that the entire purchase price of a property, and in some cases even the additional costs, is fully covered by a loan without the buyer having to contribute any equity. This type of real estate financing allows for the purchase of a property without prior savings. However, this type of financing comes with higher risks, as borrowers may quickly fall into a debt trap if they encounter payment difficulties. Additionally, interest rates for full financing are usually higher, as the bank takes on greater risk and compensates for it with higher interest rates.

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© 2023-2025 Vier Wände UG (haftungsbeschränkt)

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