100% - 105% Home Purchase Only Financing Program

• 0% downpayment
• 105% home financing
• 105% LTV Purchase,
• No Prepayment Penalty
• fixed-rate mortgages
  
  

No Prepayment Penalty

Ideal for first-time homebuyers and move-up Borrowers
who lack the funds for down payment and closing costs,
and interested in obtaining maximum 15, 20, 25 or 30 year term financing.

With this loan program, the  first-time homebuyers or move-up Borrowers get a loan that covers 97% of the homes value and also covers the 3% downpayment, resulting in 100% mortgage financing.

Key Features Overview

Purchase financing has to be a single family residence (no duplex or larger allowed)
Single Family Housing (1-Unit) $322,700 (2003), and up to $333,700 for 2004:

• SFRs (Single Family Residence)
• Modular (double-wide unit, at minimum, built after June 15, 1976)
• PUDs (Property Under Development) (include: modular homes)
• Condos
• Townhomes

No down payment is required from the Borrower, however, the borrower is required to pay at least 3% of the sales price, all of which may be applied towards closing costs and/or prepaid items (i.e. insurance & taxes etc...).

• Borrower funds on deposit including checking, savings, certificate of deposit, Individual Development Account or other depository accounts.
• Borrower's own secured assets, such as a 401(k) loan.
• Grants, Gifts or unsecured loan from a relative, domestic partner, fiancé, or fiancée, nonprofit agencies, nonprofit community organization, government agency, or the Borrower's employer that need not be repaid.
  • Unsecured loan from the Borrower's employer, cannot be due and payable, and the Borrower must retain the right to continue making payments on it in the event that the Borrower no longer works for the employer.
  • Contribution plus the LTV may not exceed 100%. No Exceptions.
  • Premium pricing limited to 2% of value. (i.e. 2% of $200,000 = $4,000)

• Cash-on-hand
• Sweat equity

Maximum Financing (multiply home value by .05)
per these guidelines

Borrowers can finance up to 105% 
Maximum LTV/CLTV (loan to Value/Combined Loan to Value): 100/105
LTV = Loan Amount divided by Home Value (as appraised)
CLTV = LTV + Secondary Financing

• If the CLTV is greater than 100%, the subordinate financing may only be a Community Second. Funds from the Community Second can be applied toward closing costs and prepaid items. Any excess amount after satisfying closing costs and prepaid item requirements is to be applied towards the down payment.

• With no secondary financing, 90% is the minimum LTV
• With secondary financing, there is no minimum LTV

Mortgage Insurance (MI) Requirements

• Borrower Paid only (TAMI not allowed)
• Loans with a representative credit score less than 620:
  • Require delegated manual MI, and
  • A-minus rates may apply, and
  • An MI certificate must be in the loan file prior to closing
• For MI requirements for energy-efficient mortgages may differ among lenders
• All manufactured housing requires non-delegated manual MI.  
  • An MI certificate must be in file prior to closing.
  • The certificate must be from PMI, RMIC, or Triad.

See These Purchase Programs contain common lender specifications

97% Purchase Financing

100% (up to 105%) Financing

103% Financing

See Rent Vs. Own

Click here and Try our Purchase Calculator