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Combination
First and Second Mortgage
Advantages:
- Cost
effective down payment strategy
Combine a first and second mortgage to bypass the added
expense of
private mortgage insurance (PMI) while making a down payment as
low as
5% of the purchase price
- Lower
interest rate
Purchase
a larger home with a smaller first mortgage, avoiding the
higher interest rate of a “jumbo” first mortgage loan
- Build
equity faster
The
home equity loan (second mortgage) has a shorter term than a
traditional first mortgage loan, allowing you to pay it off faster
- Simplicity
& savings
One
application process, one closing process, one set of closing costs
equals a two-in one process, saving you time and possibly money
Best
for:
- First-time
homebuyers with limited savings
- Move-up
buyers with high-yielding investments who would rather use
a home equity loan for their down payment instead of liquidating
their assets
- People
delaying the purchase of a home because they are expecting
to use a future bonus, commission check or inheritance toward
the down payment
Click
here to read about the new Home Asset ManagementSM
Account* -- a new kind of combination mortgage.
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| Here
are 3 possible scenarios based on a purchase price
of $150,000: |
First
Mortgage 80%
Home Equity Loan 10%
Down Payment 10%
|
$120,000
$15,000
$15,000
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First
Mortgage 80%
Home Equity Loan 15%
Down Payment 5% |
$120,000
$22,500
$7,500
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First
Mortgage 75%
Home Equity Loan 20%
Down Payment 5% |
$112,000
$30,000
$7,500
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No
Money DownSM Program
Advantages:
- No
down payment
Finance up to 100% of the property value or
purchase price (whichever is
lower)
- Help
with closing costs
Have up to 5% of your closing costs built
right into your loan
- Easy
qualifying terms
Flexible credit guidelines may make it easier
for you to qualify
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Best
for:
- First-time
homebuyers with limited savings
- Move-up
buyers with little equity
- Borrowers
who fall within HUD’s median income limits – high
cost area exceptions apply
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FHA
Mortgage
Advantages:
- Low
down payment
As low as 3%
- Authorization
to use cash gifts
Homebuyers can receive some or all of their down payment and loan fees from
relatives or unsecured loans
- Usually
assumable by the next owner
A strong benefit in certain rate environments
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Best
for:
- Homebuyers
who have limited savings
- Borrowers
with low-to-moderate incomes
- Members
who are seeking relaxed lending guidelines for
their debt and income
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Easy-to-OwnSM 3%
Down Mortgage
Advantages:
- Low
down payment
Only 3%
- Down
payment assistance programs
Ask about special funding to help overcome the obstacles faced by low-to-moderate
income borrowers
- Easy
qualifying terms
Flexible
credit guidelines may make it easier for you
to
qualify
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Best
for:
- First-time
homebuyers with limited savings
- Move
up buyers with little equity
- Borrowers
who fall within HUD’s median income limits
- high cost area exceptions apply
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Other low and no money down programs
(including VA loans) are available for
NEA members and
their families.
For more information call:
1-800-NEA-4-YOU
(1-800-632-4968)
Click
here to apply now.
*Home
Equity financing provided by Wells Fargo Banks. Members FDIC. ©2006
Wells Fargo Banks. All rights reserved.
The benefits of the NEA Home Financing Program cannot be combined
with any other offer. NEA Home Financing Program® is a registered
mark of NEA's Member Benefits Corp. Wells Fargo Home Mortgage is
a division of Wells Fargo Bank, N.A. © 2006 Wells Fargo Bank.
All rights reserved. Information is subject to change without notice.
Credit subject to approval.
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