Buyer closes on Danbury condo with $100 out of pocket

Mortgage lender: James Forte Property type: Condo in Danbury

Purchase price: $ 225,000 Borrowing amount: $ 225,000 Loan type: 30-year fixed conforming

Rate: 5.250 percent

Back story: The borrower was a teacher in Fairfield County who had been renting for the past eight years and was sick of throwing his money away on rent but didn’t think owning a home was possible as he had nosavings.

He was working with his Realtor to find a new rental when his agent posed the question, “Why don’t you buy instead of rent?” When down payment came up as the concern by the buyer, his Realtor knew that he needed to call James Forte

Forte took the application and took the time to understand the borrower’s current situation, comfort level, needs and goals. Most of the 100 percent financing programs out there either have low income restrictions, are only available in certain rural areas or are restricted to single-family homes.

Forte however, has special programs that most lenders do not and quickly came up with a pre- approval for 100 percent financing with no income or location restriction that was also eligible for a condo. The borrower had great credit and a decent income but no savings.

So Forte set the loan up as two loans; a 97 percent first mortgage, and a 3 percent second mortgage, and was able to add a “seller credit” to finance all the closing costs. So the borrower literally needed less than $ 100 out of pocket to purchase and close on this condo.

The total monthly payment, including the taxes and common charges, was less money per month than a comparable rental was and the borrower was able to close with less money out of pocket than the first month, last month and security deposit cost.