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Is 100% Financing the right option for you? MainStream can help you make the right decision depending on your goals.
Zero down payment, or 100% Financing Mortgages, have become a popular choice for financing a home. They are designed to offer homeownership opportunities to individuals with good credit, but who lack the ability or desire to make a down payment on a home.
100% Financing provides an option for those who wish to invest their savings in assets other than their home. The fixed rate loan is available for purchase, new construction, or home improvement. While not required to make a down payment, you must have a minimum of $500 of your own funds* in the transaction. These funds are applied toward your closing costs and may come from your own funds, a gift from a relative, grant, or sale of assets you own.
*Note: You do not need $500 of your own funds if you have 3% into the transaction. At that point, 100% of the 3% can be a gift or grant. Also, the seller can contribute up to 3% toward the transaction for closing costs and pre-paids, but then you will once again need the $500 from your own funds.
Is 100% home financing right for me?
This innovative financing strategy offers you the benefit of
- No cash needed for down payment. Avoid having to liquidate assets to come up with a down payment.
- Reduced up-front mortgage expenses. Use the 100% Home Financing option to control your up-front expenses by reducing your down payment to as little as zero without having to pay mortgage insurance.
- Preserved investment strategy. 100% financing allows you to keep your investment portfolio intact by avoiding liquidation of your assets to fund a down payment.
- Increased potential tax deductibility. By financing the entire purchase price of your home, rather than an amount reduced by a down payment, you may increase the amount of deductible interest expense.
- Deferred capital gains tax exposure. Keep your assets invested and defer potential capital gains tax.
What are the requirements for 100% financing?
There are several requirements to qualify for 100% financing strategy offers you the benefit of
- Property must be owner occupied
- You must have a FICO credit score of 620 or more in most cases
- Your debt ratio must be 45 or less*
- Allows for extended ratios or less thank perfect credit, but your rate and terms (i.e. private mortgage insurance (PMI)) will vary accordingly
*Some 100% financing options require your debt ratio to be 45% or less, but not all. Check with your Loan Specialist.
Click here to receive your free eBook, The Mortgage Handbook, to use as a guide as you begin and work through your mortgage application process, including checklists, worksheets and tips on how to speed up your approval.
Email us or call us at (877) 355-2152 for rates, free qualifications, general information, or to apply!
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