Buy a Home for ONLY 1% Down!

Since the end of down payment assistance (DPA) we have been looking for home loan programs for our clients that require little or no money down. And there is good news, we’ve found one at The Lending Co.

To fully understand how the loan works and how you can take advantage of the 1% down payment FHA home loan give Phil Trepak a call at 480-483-4601, be sure to tell him Gary and Karen sent you (we don’t get a referral fee or anything, I just want Phil to know the time he’s invested educating us is yielding results).

Here is a basic run down on the loan program:

1st loan of 92% of the purchase price, FHA 30 year loan at a fixed interest rate

2nd loan of 5% of the purchase price, 20 year loan at a fixed interest rate

You put 1% of the purchase price down

The Lending Company gives you 2% of the purchase price

You may be asking why they would give you 2% out of there own pocket? The first reason is that an FHA loan requires a 3% down payment. So your 1% and their 2% add up to your 3% down payment. The second reason is that they will make their money through the loan origination, over the life of the loan, or by reselling it to another lender.

You will still have to qualify for an FHA loan, after all times have changed and this isn’t like a few years ago when all you had to do was be able to fog a mirror to get a mortgage, but FHA loans are typically easier to qualify for than conventional loans.

Now for the next part that truly makes this a 1% down payment home purchase. When we write your offer on the home you like we ask the seller to pay for your closing costs. Having the seller pay for the buyer’s closing costs is not unusual in today’s real estate market.

So there you have it. You provide 1%, The Lending Co. provides 2%, the seller pays your closing costs and you get a fixed interest rate loan. Now all we need is to find the right house.