[100% Financing Loans]
100% Financing can help buyers overcome the #1 hurdle of home ownership-the down payment. The program works like this: CNB will take the first mortgage up to 80% of the purchase price. The remaining 20% is secured by a second mortgage. This combination will allow you to pay off your total loan obligation sooner than conventional programs, because you're not paying thousands of dollars in PMI insurance. For the same reason, 100% financing payments are about the same each month as conventional loan payments. The benefits are obvious for first-time homebuyers with good credit but no down payment. But 100% financing can also be a great option for people who do have the money for a down payment. Many people are earning a higher rate on their investments and would be better off to finance the house and leave their funds in their portfolios. In fact, over half of the 100% financing loans closed are with customers who have the cash for the down payment. They simply want to hold onto their reserves.
ADVANTAGES OF 100% FINANCING
- No down payment required.
- You can keep your investment portfolios intact.
- You can buy your dream home today, without having to wait until you have saved the down payment.
- No monthly mortgage insurance premium to pay so you can build equity faster and save thousands of dollars over the term of your loan.
DISADVANTAGES OF 100% FINANCING
- Strict qualifying guidelines require excellent credit.
- The second mortgage carries a higher interest rate.
