HOME FINANCING ALTERNATIVES FOR MONTGOMERY COUNTY, MARYLAND HOME BUYERS GOOD INCOME? GOOD CREDIT? NOT MUCH CASH?

We have the solution. . . . . . 100% FINANCING

NOW, you can buy a home in Montgomery County with 100% financing.

With the change in credit approval guidelines in the past couple of years, buyers looking for a home in Montgomery County can now buy a home and finance the purchase through 100% financing.

It isn't unusual for prospective home buyers to have good income and little to no cash. Home buyers who have recently graduated and just starting up the professional ladder are ready to buy a home, have no problem making the monthly payments but have no savings can benefit from 100% financing loans. Or, a home buyer who has recently advanced in their profession to high earnings and not had time to save money for a down payment on their home of choice would benefit. A prospective buyer who may have recently paid off the balances on their credit accounts or automobile loans and depleted their savings is a good prospect for 100% Financing on real estate in Montgomery County.

Now home buyers have many options. Home buyers with good credit scores have more options. If you have a credit score of 700 or better, you are eligible for 100% financing for your home purchase. **

Criteria for 100% Financing for Montgomery County Real Estate

Rates
The cost of the loan will be approximately .25% higher than market. If market rates are 6.25% for a 30 year fixed home loan, the interest rate for 100% Financing will be approximately. 6.5% for a 30 year fixed home loan.

Reserves
The Montgomery County home buyers will need to have the equivalent of 4 months mortgage payment in reserve. This reserve may be in the form of cash, savings, money in your 401(k) saving plan, other
retirement plan account or money in your equity account.

The 80/20 Home Loan Option
Home buyers may obtain 100% financing on a home with the following loan.

80% First Trust. This loan meets the 80% threshold for PMI and PMI would be required. PMI is Private Mortgage Insurance for loans with less than 20% down.

20% Second Trust. This is the same as borrowing the down payment on your home purchase. The interest rate on the Second Trust will be approximately 1 to 1 1/2 % higher than the first trust, but will be on only 20% of the purchase price and can be paid off early with no pre-payment penalties for homes in Montgomery County.

Additional Benefit
Interest on the 2nd Trust is tax deductible.

Buying a home in Montgomery County means looking at all financing options. We'll help you get the best loan for your needs.

** Less than 700 Credit Score?
Montgomery County home buyers who have credit scores between 600 and 700 may be able to qualify for 100% financing on their home purchase with slightly higher than market interest rates. Rates will be based on the credit score. Contact us and we'll have an experienced loan officer analyze your needs. When you use Homefinders.com buyer's agents as your Realtor, you benefit from referrals to qualified loan officers.

First Time Home Buyers and Home Buyers With No Credit History
100% Financing is available to prospective Montgomery County home buyers and home buyers who have little to no credit history. CONTACT US and we'll have an analysis of your real estate options done for you.

Closing Costs
Closing costs for real estate in Montgomery County will be approximagely 3% of the purchase price. You may be able to finance some or all of these costs. See CLOSING COSTS for a detailed explanation.

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