Thursday, March 17, 2005

New Loan Programs

Everyone has probably heard of the low start rate programs at 1.25% or thereabouts. These programs keep the payments low and allow a buyer to get a larger or better home than he would be able to afford on a typical 30 year fixed rate mortgage. These programs all require 20% down. On a typical $600,000 home, that's $120,000, something alot of homebuyers just don't have.

One of my buyers recently came to me with 10% to put down on a home. They were able to to get a low start rate 1st mortgage for 80% of the purchase price and a low rate second for the other 10%. This allowed them to purchase much more home for their growing family.

So, now with just 10% down, buyers can take advantage of those low start rate programs. These programs aren't for everyone, but for clients that are expecting growth in their income in the next few years, it may just get them the home of their dreams right now before home prices climb out of reach.


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