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Posts Tagged ‘100%’

In today’s world of high-priced homes the cost of living is always on the rise. Conversely it would seem that wages are not pacing this cost. Buying a home has become more and more difficult as time goes on and to some it may seem that buying a home will never be a viable option. Well, perhaps it is time that these people looked into the possibility of a 100% financing option. These loans are tailor made to help people with good credit but little liquid cash to make a down payment, afford the home that they have always wanted. This kind of loan eliminates the need for a cash down payment by splitting the total loan into 2 different smaller loans. An 80/20 program is one of the most favored of these programs. It gives an 80% mortgage loan and a 20% home equity loan that covers all of the down payment and loan amount. This kind of loan program is nice as it allows the borrower to avoid not only the down payment but the necessity of applying for a higher-rate jumbo loan. Read More

With the current “mortgage meltdown” we hear so much about these days, your average consumer thinks that the days of 100% financing have gone by the wayside. True, you are hard pressed these days to find a bank or lender that will want to carry a second mortgage that combined with a first mortgage adds up to 100% financing. That’s because if there is a default, sitting in second lien position is particularly dicey. Too much risk is involved. And since, in recent history, that scenario of the 80/20 combo was the most common 100% financing vehicle available to a certain group of consumers (non first time homebuyers), there’s a misconception out there that 100% options are all but dried up. But, a-ha! There is hope for someone who has great credit but prefers to invest his/her assets elsewhere when rates are so low. It’s called the Flex 100. And it can apply to purchases and refinance transactions. I heard an analyst mention on television the other day that mortgage money is Read More