Low Down Payment Mortgages

Low Equity Mortgages

LOANWINDOW.NET ANNOUNCES THE RETURN OF NO-DOWN-PAYMENT MORTGAGES

Fast and simple access to State-subsidized down payment and closing costs assistance programs designed for first-time homebuyers

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(May 7, 2008) No-down-payment mortgages have disappeared during the housing finance crisis. State-subsidized down payment and closing costs assistance programs have for years offered a way to pay little or nothing down, but have been hard to find and harder to close. Loanwindow.net uses technology that brings together a number of these programs and loan approval decision-makers into a single point of automated loan placement decision-making. Borrowers can quickly determine whether they are eligible, and if so, whether they will be approved.

Mortgage lending programs requiring little or nothing down have been driven out of the market, taking first-time homebuyers who relied on them out of the market. According to the National Association of Realtors® (NAR), 40% of homes sold nationwide over the last 10 years have been sold to first-time homebuyers. The median first-time homebuyer put only 2% down, and a full 43% put no money down at all.

State agencies and non-profits have for years offered 100% financing. However, it is time-consuming to find these programs, determine eligibility and get them closed – typically at least 45 days. Each agency has its own qualification standards, geographic and demographic limits, underwriting guidelines, submission procedures and funding restrictions.

Loanwindow.net uses new technology that quickly delivers the best answer for an array of agencies' programs. The technology determines borrower eligibility in just one day, and also slashes the time between initial application and closing to as little as two weeks.

Not everyone is eligible, and of those, not everyone is approved. However, with eligibility, application and conditional approval or denial all determined within one week, borrowers quickly know where they stand.

The goal is to bring the first-time homebuyer back into the market by providing fast and reliable financing for quality borrowers who can only put little or nothing down.

Much of the current turmoil in the mortgage markets is caused by continually-changing mortgage insurance rules. These State-sponsored programs are impacted by these frequent changes, too. Closing a mortgage as fast as possible is the best way to avoid rules changes that torpedo many in-flight loans right now.

Simple and predictable financing for the roughly 20,000 first-time homebuyers that spring up in California each month will not only help these homebuyers. It will stem the decline in home prices by bringing back the first-time buyer who has always been a major component of overall demand for housing.

About Loanwindow.net

LoanWindow.net (www.loanwindow.net) is a project launched by the principals of Baton Online Processing (www.batononline.com) — a company that has offered technology-enhanced mortgage loan processing for five years.