Nick Rowson at RPM Mortgage brought to our attention this interesting new program for California home buyers. It seems to be geared towards higher income families without a large down payment to buy the home they want. This program makes it possible for home buyers who have income to afford to live in great neighborhoods to actually buy homes there.
Basically, it allows the buyer to put down 10% of the purchase price and only get a loan for 80% of the purchase price. The remaining 10% comes in as an investment from real estate firm FirstREX. Again, this if for properties needing jumbo loans, for example in the $600,000 to over $1,000,000 range. FirstREX essentially invests 10% in the property with you and shares in any appreciation. The benefits to home buyers include: lower down payment, lower monthly payment than financing 90%, lower income needed to qualify for the loan, and more purchasing power. Rowson acknowledges “it’s not for everybody, but it’s a great opportunity for some.”
Here is a typical scenario:
Here is another situation where the program could help:
There are surely many disclaimers and details with a program like this, so we suggest you contact a mortgage professional for more details to see if this program is right for you.
See: htttp://www.TeamRowson.com/ Nick Rowson, RPM Mortgage, (949) 706-8024