No Money Down PLUS Loans
Amy March 7th, 2007
I was recently scanning the loan programs for a client of mine looking for 100% financing. It turns out that 100% financing is the most common form of financing in the US today. After looking into some options for them, this particular “No Money Down Plus� program seemed to be a fit for my clients. Sharon Natarus of Wells Fargo has made some additional comments below on this new product:
Here are some thoughts on the 100% NO Money Down Program. Many people have chosen the 80/20 program over the last several years, but there is a nice alternative for people that one to have “one loan and one payment” Our product is the No Money Down Plus. We can offer a fixed rate for 30 years. Many times the payment is lower than 80/20 ( if a customer chooses a fixed product for the 2nd, the rate is higher and the payment is higher due to the principal and interest payment on the 2nd mortgage). It gives the customer the peace of mind that the payments are predictable. We can also finance up to 3% of the borrower’s closing costs and pre-paids. We can also offer a slightly higher rate to avoid PMI. The requirements are a minimum credit score of 680 and 2 months payment reserves. The reserves may be in a 401k or other savings program.
To summarize the “No Money Down Plus� allows borrowers to
- have a credit score of 680+
- allows them to only have 2 months of payment reserves (can be in a 401K)
- offers a fixed rate for predictable payments
- allows the borrower to finance up to 3% of the closing costs and prepaids (on a 150K home that is $4,500 which should cover those costs)
- allows you to avoid PMI which is often not Tax Deductible
Call Sharon if you have an interest in learning more about this program today at 513-587-3524 or Toll Free Phone: (800) 846-2240
http://www.sharonnatarus.com
