The 100% Home Loan (CD Loan) allows borrowers to receive 100% financing when sponsors (up to 3) pledge a CD (certificate of deposit savings account) equal to 20% of the home value. A 90% net loan to value is also available with mortgage insurance and a 10% CD pledge. The CD will accrue interest on the savings along with receive 100% financing with either a fixed rate mortgage or a low minimum rate Pick-A-Payment Option ARM loan.

Some benefits of the benefits you will receive from financing your mortgage with a 100% CD Home Loan;
No need to wait to save for a down payment
Variety of Options
Income for your sponsor at a "market rate"
Flexibility
Easy

The features of the 100% CD Home Loan;
100% financing
Availability for purchase or cash out refinancing
Sponsors earn interest on CD
Leveraging with benefits

The benefit for a borrower will come in retaining an asset in the form of a CD and earn interest on the CD rather than dumping a bunch of money into equity. The borrower can select any term CD from a 3-month CD to a 5-year CD. The CD must remain open for a minimum of two years so it will continue to roll over and pay out interest. When the equity position reaches 80% and if the CD has been open for two years, the CD is released.

A parent could open a CD and allow it to be collateralized for their child who is buying their first home or a borrower can self sponsor the CD.

It is important to know that the CD can be sponsored by anyone, and also by multiple people. If the CD is self sponsored, you can even do the loan as stated.

 

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