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Many prospective homebuyers struggle when attempting to save adequate funds for a downpayment and closing costs to purchase a new home. This burden has been lessened over the years by the creation of 100% mortgage financing. In some cases, loan to values can even exceed 100%. These recent changes in loan guidelines have opened the door to homeownership for thousands of prospective homeowners who would otherwise not be able to purchase a home. Several options are available to applicants and the terms of these loans will vary depending on the credit scores, income documentation, and occupancy status of each applicant.
100% financing can be obtained in one of two ways. The first option is a first mortgage at 100% loan to value. This typically requires mortgage insurance and interest rates vary depending on credit scores and other factors. The second option is an 80% loan to value first mortgage and a 20% loan to value second mortgage behind the first. This creates 100% loan to value financing. Again, the rates will vary based on credit scores and other factors. Generally, credit scores need to be 600 or greater and other conditions may apply in order to qualify for 100% mortgage financing.
100% mortgage financing is not limited to borrowers struggling to save adequate funds. You may want to place your downpayment money in other types of investments. These applicants typically will reside in a home for shorter periods of time and do not want their assets in non-liquid investments. Consult your financial planner for more information. Veterans and those eligible for V.A. mortgage loans can also purchase a home with no downpayment. ProMax Mortgage Services, Inc. offers all of these programs. Call us today at (407) 647-3377 and we will explain them in easy to understand terms.
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