In today’s rapidly-changing real estate market, many prospective home buyers are discouraged by the amount of cash needed in order to close on their new home. What if there was a loan program that meant you could own a home with little to no money out-of-pocket
Introducing the 103% Financing loan program! With 103% financing, you put no money down on your new home, and you finance an additional 3% of the purchase price that is used to help you financially.
Closing costs when buying a home can be 3 - 5% of the purchase price, and some areas of the country can see closing costs of 6% or more. The 103% Financing loan program will allow you to finance some or all of those closing costs, helping you get that new home for little to no money out-of-pocket
. You can even use it to pay points and buy your interest rate down.
Alternatively, that extra 3% may be used to pay off consumer debt like credit cards, car loans, collections, judgments, tax liens, etc. to help reduce your monthly obligations and make that new home more affordable.
The higher your loan to value ratio, the higher your interest rate will typically be so it may make more sense to look at having the seller pay your closings costs, or putting a little money down to avoid having to finance more than 100% of the value of your home.