HOME FINANCING ALTERNATIVES FOR FREDERICK COUNTY, MARYLAND HOME BUYERS GOOD INCOME? GOOD CREDIT? NOT MUCH CASH?
We have the solution. . . . . . 100% FINANCING, 103% FINANCING, 107% FINANCING
NOW, you can buy a home in FREDERICK County with 100% financing.
With the change in credit approval guidelines in the past couple of years, buyers looking for a home in Frederick 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 Frederick County.
Now home buyers have many options. Home buyers with good credit scores have more options. If you have a credit score of 680 or better, you are eligible for 100% financing for your home purchase. **
Criteria for 100% Financing for Frederick 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. For 103% Financing, interest rate will be approximately 3/4% higher;
and for 107% Financing, the interest rate will be approximately1% higher.
The GOOD NEWS IS: You can finance your closing costs with the proceeds
of the loan over 100%.
Reserves
The Frederick 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 Frederick County.
Additional Benefit
Interest on the 2nd Trust is tax deductible.
Buying a home in Frederick County means looking at all financing options. We'll help you get the best loan for your needs.
** Less than 680 Credit Score?
Frederick 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 Frederick
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 Frederick County
will be approximately 3% of the purchase price. You may be able to finance
some or all of these costs. See CLOSING
COSTS for a detailed explanation.
Frederick County Real Estate
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