Mortgages & Loans

This mortgage is for borrowers who need 100% financing. Generally, it is for a 30 year fixed mortgage. No money down is required, but the monthly mortage payment must be deducted directly from the borrower's paycheck.

Borrowers can borrow up to 103% of a home's purchase price or appraised value, whichever is lower. There is no down payment. Closing costs including PMI can be financed as part of the loan. Generally, the loan period is for 15 or 30 year fixed mortgages and is offered to borrowers with good credit.

A borrower takes a conventional 30-year loan for 80% of the loan amount. A second mortgage for 10% of the loan amount is taken simultaneously at a slightly higher rate. The idea is for the borrower to quickly pay off the second loan and leave the borrower with a fixed loan with no Purchase Mortgage Insurance (PMI).

According to Federal law, you are entitled to a free copy of your credit report within 60 days of being denied credit. Ask the lender which credit bureau the lender dealt with in order to get your free copy. You may also contact one of the three major credit bureaus. Their names are Tran Union Corp, PO Box 390, Springfield PA 19064-0390, 1-800-916-8800. Experian (formally TRW) PO Box 9530, Allen TX 75013-2104. Equifax PO Box 105873, Atlanta GA 30348 1-800-685-1111. Speak to your local CPA if you need assistance obtaining a copy of your credit report.

For mortgage interest payments of $600 or more, banks and other lending institutions will mail you Form 1098 listing your mortgage interest payments and also any deductible points. This amount is deductible on IRS Schedule A.