Spinoff to the 100% financing question

I was reading how everyone responded to the 100% financing question and that most feel it's not a good idea. What if you had the option to do 100% financing through a first time homebuyer program with a really good interest rate? Does that change anything in your opinion? Or is 100% never a good idea and why?

Thanks, I'm new to all this!

Re: Spinoff to the 100% financing question

If you are doing 100% financing because you've got a ball of money invested in something that is guaranteed not to loose(which is hard to come by these days)that is great, otherwise I would not do it. There is a strong possibility that the housing slump is not over & may not be for a couple of years.
People will say "but we don't plan to sell for at least 5 years"....you never know what could happen. If you HAD to sell & you couldn't because you owe more than you paid you could end up like millions of Americans in foreclosure right now.
There is a very good reason why in the entire history of residential mortgages-until the last 5 years-down payments & good paperwork were necessary.
Check out an amortization schedule for your mortgage. The first several years you pay almost NOTHING toward your principle, so if you don't put any money down & you aren't building equity through payments & house values continue to go down you will be upside down on your loan....no home equity lines of credit, no refinancing, no way to sell without forking over the difference.
Its not a pretty scenario.
However I'm NOT a financial advisor & neither are the people that sell mortgages so I'd suggest you consult one so you can get the ideal picture for your exact situation.
Good luck