Long Beach Home Loan

Advantages of 100% financing - If you have money saved for a down payment it may not be needed. There are several advantages to taking the 100% financing, and saving your down payment. The 100% financing has become increasingly more popular and easier to obtain.

From a purely financial viewpoint, when you purchase a property with 100 per cent financing you are minimizing your financial risk and shifting almost all of the risk to the lender. This concept has become very popular, especially with investors who are always looking to minimize their exposure to risk.

As home prices have risen, so have rents. Often, you can buy a home with 100% financing with a monthly payment that is the same or or only slightly higher than your current rent. When you calculate your income tax savings from your mortgage interest deduction, buying can cost less than renting. In addition, if you get a fixed rate mortgage, your monthly principal and interest payment is locked in for the life of the loan. Your rent, however, will increase 3% to 5% annually based on national averages.

100% financing allows you to move into a home without the stress or difficulty of supplying the down payment. You also will begin to earn equity in your new home.

We don’t think that saving for a down payment should be the reason you put your dreams on hold.We can help you buy your dream home with a zero down mortgage loan.You’ll not only be able to afford a home sooner, you’ll probably be able to afford more home.With a zero down mortgage, the amount of loan you can qualify for is determined by your ability to make your monthly payments rather than how large a down payment you’ve saved.And, for most buyers, this means qualifying for a larger loan.

If you plan on using 100% Financing you need to be absolutly certain your new home will hold its value or appreciate.
Even a small decrease in value can leave you "under water", or owning more than your home is worth.

By using 100% financing, you can keep your money earning interest in your savings account or money market fund. You can also gain a higher tax deduction for interest paid on the loan.

By financing your home with zero money down using 100 percent financing you will be able to hold onto your money instead of tying it up into the equity of your home. This way you will be able to hold onto your money and put it away in a savings account, investment account, or any other type of account to hold onto for a "rainy day". Sometimes, unfortunate events arise and you are required to utilize some of your savings. If this money is tied up in the equity of your home, you may not be able to get it out very easily or you may have very unfavorable terms to access the money. However, if you were to keep this money in your savings account, the money would be accessible instantly. Therefore, always try to make sure that you have some savings put away somewhere and don't tie up every penny you have into the equity of your home.

100 percent financing can be beneficial to any borrower no matter how much money they have in savings. Instead of putting your money towards your home, make an investment that has a higher rate of return than the amount of interest that you are paying on your home, this way you are creating positive cash flow. With 100% financing you gain the same amount of equity if your home appreciates in value as you would by purchasing a home with a 20% down payment

100% Financing - Today’s lending market is far more lenient with home loan financing than in times past. The ability to borrower up to 100% of the homes value would have been un-thought of 20 years ago.

If you are looking for 100% financing but do not qualify for it, there are downpayment assistance programs available that can help you purchase your new home. Ask your mortgage professional in Huntington Beach, about such programs that may be available to you. These programs are available to people in every credit situation, and are a great tool to get you in your dream home.

For example: FHA requires that you put 3% down to qualify for an FHA mortgage. The grant programs will give you the 3%, as long as the sellers agree to it, and it is written in the offer to purchase. The money does not get paid back from your funds ever, thus achieving 100% financing. for you. This is just one example of how a downpayment assistance program can work for you.

Since real estate values have increased at a much faster pace in recent years, many home buyers find it difficult to save for a downpayment. As a result, 100% financing has become ever more popular. Although more banks are offering an array of 100% financing loan products, home buyers should be realistic and expect to pay higher interest rates on these type of "No Money Down" mortgages.

When you are purchasing a home with 100% financing it is an option to get the home sellers to pay your closing costs. This can make owning a new home a very low cost process.

In 2005, 43% of first time home buyers used 100% financing programs.

100% financing can be obtained by financing 1 loan at 100% of the value of the home or by dividing the loan up into 2 mortgages and financing an 80% 1st mortgage and a 20% 2nd mortgage, which is called an 80/20. An 80/20 in becoming a very popular financing option for people looking to avoid mortgage insurance.

There are even programs that will allow you to finance up to 103% of the purchase price of the new home, the additional 3% is used to help pay for closing costs.

When you are purchasing a home with 100% financing it is an option to get the home sellers to pay your closing costs. This can make owning a new home a very low cost process. Make sure your relator knows that you want seller paid closing cost's when you write your offer to purchase.

In addition to the 100% programs for your primary residence there are now programs that will allow you to purchase a non owner occupied or investment property to 100%.

There are certain qualifications to get 100% financing that your mortgage broker can help you figure out. They are very lenient and there are tons of programs available. If your even considering purchasing a home, contact your broker now donald@homerefinow.com .