With this Free Down Payment program, the mortgage lender will advance 5% of the purchase price to be used as your down payment.
With this Free Down Payment program, the mortgage lender will advance 5% of the purchase price to be used as your down payment. For this benefit, the mortgage rate offered, will be the lender “posted” rate which compensates the lender for the cash back received. Providing you complete the full mortgage term chosen (5, 7 or 10yrs), no repayment of the cash back is required. The premium paid to the mortgage insurer, is only 2.9% on a 25yr amortization as compared to 2.75% if you supplied your own down payment?
To be eligible for the Free Down Payment program, you need to be buying a new and completed home or an existing property. You must be able to meet the lending and credit criteria established by the program and the property must be your principle residence. At a minimum, you must have liquid assets in the amount of 1.5% of the purchase price to cover closing costs. These funds are to be in place at the time of application.
The maximum loan to value ratio is 95% plus mortgage default insurance premium. Once approved, you may make weekly, bi-weekly, semi-monthly and monthly payments.
To see if you are eligible for the Free Down Payment program, contact Laurie Baird to discuss the program and its particulars. Details will be explained at your free consultation meeting.