Borrowed Down Payment Program

Did you know that it is still possible to borrow your down payment for your mortgage?!

Many folks think that this product is no longer available, however it is indeed! It is often misconstrued with another product: the 100% Financing Product, which is no longer available.

The key to the Borrowed Down Payment Product is that the lender must include the funds that were borrowed as a liability, as part of your application.

                                                                      For instance:

You borrow $12,500.00 towards your purchase of a $250,000.00

home purchase. The loan amount of $12,500.00 must be part of the

liabilities on your application: if revolving credit then you must input

a repayment amount of 3% of the $12,500 therefore $375 per month.

Although details vary from one lender to another, it may well be worth your while to inquire with the Welch & Co Team about this product! The most important items in order to qualify for this product are to have good credit, and to have room to add the additional debt to your list of existing debts!

Key Features of the Product:

Property related

• 5-10% of the purchase price can be borrowed.
• High ratio insurance premium is slightly higher at 4.5%.
• >$75,000 <$500,000 purchase price
• 1-2 unit homes maximum.

Purchaser related

• No previous bankruptcies or consumer proposals.
• Credit profile strong (>650 minimum).
• Must have minimum two active trades for minimum two years.
• Source of borrowed funds can be personal loans, lines of credit, credit cards, gifts from non-immediate family members.
• Non-residing co-borrowers okay but no guarantors permitted.
• Ratios of income to debt same as normal.
• Borrower must be able to show that they have the ability to cover at a minimum the closing costs (1.5% of the purchase price)

Call us today to see if you might qualify for the Borrowed Down Payment Product at 613-546-2989!