- 1) 1st mortgage is FHA at 96.5% Loan-to-value.
2) Rate of 1st mortgage is 5.375% with 1% origination based on today’s rate.
3) Second mortgage is at 8% fixed for 20 years, no prepay penalty and no balloon.
4) Second mortgage cannot exceed $5500.
5) Seller is paying closing costs-$4200, per this example.
6) Buyer’s net costs is $0, per the attached estimate
7) Buyer must pay earnest money and application fees upfront, but this upfront money can be credit back in cash to buyer at the closing table.
When you are ready to buy a house, the down payment can be the biggest hurdle. FHA requires a 3.5% down payment. I have information on a local mortgage company which is offering a method where the down payment is no longer an issue, a zero down loan. There are some requirements: