We have programs that provide 100% financing of the purchase price of your home, this mortgage is specifically designed for homebuyers who may have limited available cash, and good credit or for people that would like to keep their funds in a liquid account that earns a rate of return rather than in their home.

100% "one loan" for a low monthly payment. For clients that are still establishing credit and ready to purchase a home, this is a great option. The programs are very flexible and go by Fannie Mae guidelines.

ADVANTAGES TO 100% FINANCING

• No cash needed for down payment
• Frees Up Cash—Existing funds can be used for closing costs or other needs, rather than a home down payment.
• Don't need to liquidate stocks and other investments
• Borrower may want to finance as much as possible for tax deduction purposes

80/20 loans are available to avoid paying mortgage insurance.

The main advantage of this type of loan, also known as 100% Financing, is the ability to buy a home with almost no money down. If you have a strong credit profile but have limited funds to commit to a down payment the 100% loan or 80/20 Mortgage is just right for you.

Lenders typically require a down payment of at least 20 percent of the purchase price. If the loan amount is for more than 80 percent of the purchase price, private mortgage insurance (or PMI) is usually required. You can avoid paying PMI by getting a second mortgage ('piggyback loan') to back up your first mortgage.

The first mortgage is provided for 80 percent of the cost of the home and the 'piggyback' second mortgage is for the remaining 20 percent. The 80 percent first mortgage can be a fixed-rate (15-year or 30-year), adjustable-rate (usually 5/1, 7/1 or 10/1 fixed period ARM) or interest-only loan. The 20 percent second mortgage can be a home equity line of credit that changes with the prime rate.

Combined, the two loans allow you to purchase 100% of your home with no money down.

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