How The Program Works

The Downpayment Company arranges 100% financing for homebuyers using one of two structures: a 100% single loan secured by a first mortgage, or a combination of an 80% first mortgage and a 20% downpayment second mortgage.

The 80/20 combination loans are the most common form of 100% financing and they offer the most flexible guidelines. Under the 80/20 structure, The Downpayment Company will arrange a downpayment loan secured by a second mortgage equal to 20% of the home's purchase price. The borrower is not required to provide any portion of the downpayment funds. The maximum downpayment loan ranges from $50,000 to $150,000 depending upon the credit worthiness of the borrower and the type of property to be financed. The Downpayment Company also arranges the 80% first mortgage concurrent with the downpayment second mortgage. The maximum first mortgage is $500,000.

100% first mortgages are less commonly used and the guidelines are generally more restrictive than 80/20 combination loans. However, for those borrowers who fit within these guidelines, the 100% first mortgage offers attractive rates and terms. The maximum loan on a 100% first mortgage is $325,000. The Downpayment Company can also arrange 103% first mortgages in which the additional 3% may be used for closing costs.

The mortgage financing described herein is available for properties located in California only.

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