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100% Mortgage Loans

100% Mortgage Financing Options in Connecticut

 

Many of the options that were available to finance 100% of the purchase price of your home in the mid 2000’s have disappeared.  Today, there are two ways in which home buyers can obtain 100% financing on the purchase of their home; CHFA and USDA.  Both of these programs are government backed and allow people who might not have the money to cover the down payment and closing costs to purchase a home.

 

CHFA Financing

The Connecticut Housing Finance Authority (CHFA) has a program that is designed to help first time homebuyers purchase homes in Connecticut.  The program is designed to expand the opportunity for homeownership for first time homebuyers who would not qualify under conventional mortgage guidelines.  CHFA offers a number of benefits to first time homebuyers including the down payment assistance program (DAP) with terms that make homeownership more affordable.

  • Single and 2-4 multifamily units are eligible.
  • 30 Year fixed rate terms.
  • Special program discounts for military, teachers and policemen.
  • First time homebuyers include people who have previously owned a home but have not had ownership in the past 3 years.
  • Eligible candidates may have had a prior Bankruptcy as long as it has been discharged for at least two years.
  • Down Payment Assistance Program (DAP) provides financing for the down payment on the home.
  • Credit scores of 660 or higher are eligible for 100%.
  • Debt to Income ratios of 33%/43%

 

USDA Financing

USDA loans are a great alternative source of financing particularly for first time homebuyers.  They provide terms that allow buyers to get into homeownership with a very affordable option.

  • Much of Connecticut is eligible for USDA go to USDA.org and enter the address to determine if your property is eligible.
  • Geared toward low and moderate income families.  Moderate income is defined at 115% of the area median income which the USDA lists at $99,200 for much of Connecticut.
  • USDA provides 100% financing on the purchase.
  • Single family and 2-4 multifamily units are eligible.
  • Fixed rate, 30 year terms.
  • Credit Scores of 620 or higher. (which opens this up to a wide selection of the population.)
  • Debt to Income ratios of 29%/41% but can flex as high as 36%/48%.

 

Veteran Mortgages

Veteran Mortgages (VA Loans) are possibly the best solution for 100% financing and they are only reserved for the men and women who have served our country.

  • Single and 2-4 multifamily units are eligible.
  • No PMI is required on this loan
  • 100% financing
  • This loan type can be used multiple times throughout the veteran’s life
  • Must get your certificate of eligibility in order to proceed
  • Loans up to 417K
  • Low Interest Rates
  • Must be your primary residence

 

Get Creative

A final solution for doing 100% financing in Connecticut is to do a FHA loan with a gift.  Many people do not know that FHA loans and Conventional Mortgages allow the borrower to receive a gift from an employer or family member when buying a house.  With a FHA loan you only need to put down 3.5% (Conventional is 5% with NO PMI).  Getting this as a gift will allow for 100% financing and all that is required is to show where the funds came from and get a gift letter.

 

As you can see – you have options.  Call us today and lets discuss your 100% financing needs.

 

Thank you,

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Michael Meyer
Senior Vice President of Northeast Financial
NMLS#117875
Mike@northeast-mortgage.com
860-876-0572
210 S. Main St Middletown, CT 06457

Company NMLS#117273 

http://www.zillow.com/profile/MichaelMeyer8/

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FHA Disclosure

NMLS# 117273, Northeast Financial, 860-788-7237

The principal and interest payment on a 203,500 30 year FHA fixed rate loan at 3.25% on 96.5% loan to value is 1,025.99 with 0 points due at closing.  The APR is 4.491%.  Payments include a one time upfront mortgage insurance premium (MIP) at 1.75% of the base loan amount and monthly MIP is calculated at .85% of the base loan amount.  The .85% monthly MIP is required for a specific period of time regardless of your down payment or equity in your home.  The principal, mortgage insurance, and interest payment does not include property taxes or home owner’s insurance premiums, which will result in a higher actual monthly payment.  Rates current as of 6/26/17