2 % Down

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The 2% Down Solution Loan

The 2% Solution Home Loan is here because...a buyer's dream of owning a home shouldn't be limited by the down payment.

A creative Lender/Seller assistance program for first-time homebuyers

The Buyer's down payment is 2% (own funds). The Lender pays 3% for the remaining down payment (funds come from rebate pricing: adjusting interest rate higher to create surplus premium income for lender). The Seller pays for all or most of buyer's closing costs up to a maximum of 3% of the sales price. Note: If Seller cannot pay any of buyer's costs see Special C.A.S.H. Loan For First-Time Buyers. Together, the Lender and Seller, help the first-time homebuyer overcome the biggest obstacle to owning a home: cash needed to close escrow.

Example:

Purchase price of home	$200,000
Maximum loan amount (95% LTV)	$190,000
Buyer's down payment 2%	$ 4,000
Lender's matching down payment 3%	$ 6,000
Total equity in buyer's home at close of escrow	$10,000

Other features of 2% Solution Loan

Easier qualifying because of expanded income to debt ratios:

	35%/40% - No cash reserves required
	38%/43% - With compensating factors (maximum 25% increase in housing expense)
	40%/45% - With compensating factors (minimum increase in housing expense)

Gift funds for closing costs can be provided by a family member, employer, or a contribution from the lender

County income limits

County Limits

Los Angeles Call for limits

Orange Call for limits

San Diego Call for limits

Ventura Call for limits

	No up front premium required for private mortgage insurance (PMI monthly payment only)
	For first-time homebuyers only

Check Out Our Best Fixed Rate Programs

The 2% Down Solution Loan

Send mail to webmaster@sonware.com with questions or comments about this web site. Copyright © 1997 Century Plaza Mortgage Corporation Last modified: April 18, 2008

Send mail to webmaster@sonware.com with questions or comments about this web site.
Copyright © 1997 Century Plaza Mortgage Corporation
Last modified: April 18, 2008