Why would I want a 107% Finance Home Purchase Loan?
The 107% Finance Home Purchase Loan is a good option for a first time homebuyer.
What can I use a 107% Finance Home Purchase Loan for, and what are my options
You can use a 107% Finance Home Purchase Loan to buy any owner occupied, primary residence. Lenders offer this loan under a wide variety of terms and payment plans. Some alternatives to the 107% Finance Home Purchase Loan are the 100% Finance Home Purchase Loan and the 103% Finance Home Purchase Loan.
Why should I get a 107% Finance Home Purchase?
The 107% Finance Home Purchase Loan offers a smooth transition from renting to homeownership. While applicants must of course be able to pay their monthly mortgage bills, the 107% Finance Home Purchase helps with other costs. The 7% part of the loan’s title refers to an extra 7% of the loan’s value. That seven percent covers closing costs, and other miscellaneous fees that are associated with a home purchase. In addition, many lenders do not require down payments for this loan.
How can I get a 107% Finance Home Purchase
Credit Scores are always important in determining mortgage rates, but lenders offering the 107% Finance Home Purchase loan will be extra cautious and ask for high credit scores. You can get your free online credit report and score, but first see which profile describes you best:
- You have had only late payment reported to the credit bureau within the last seven years, and none within the last year.
- You have note been reported to a collection agency within the last ten years.
- You have established a credit history with auto loans, mortgages, and/or credit cards.
- None of your payments were more than thirty days late.
- You have not missed a single payment in the last twelve months, but may have missed a few over the past seven years.
“Needs Improvement” Credit
- You are over eighteen and have little credit history.
- You have a few payments overdue
- You have a past record of payments made sixty days late.
- You are eighteen and still establishing your credit history.
- You normally pay bills on time.
- You are over eighteen years old and have no credit history.
- You have had been reported to a collection agency within the last ten years.
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