Down Payment Options
Many people envision low-down-payment programs for first time homebuyers. But if the after-tax return on alternative uses of that money exceeds your financing costs, putting little or no money down on a home is a wise financial choice*. Financing from 95% to 100% of your home helps you avoid liquidating assets to cover a down payment and possibly paying capital gains after liquidating. This innovative financing strategy offers several benefits.
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Features and Benefits
- Reduced up-front mortgage expenses. Finance your whole purchase to control your up-front expenses by reducing your down payment to a little as zero without having to pay mortgage insurance.
- Preserved investment strategy. Financing 100% of your home purchase, for example, allows you to keep your investment portfolio intact by avoiding liquidation of your assets to fund a down payment.
- Increased potential tax deductibility. By financing the entire purchase price of your home, you may increase the amount of deductible interest expense*.
- Deferred capital gains tax exposure. Keep your assets invested and defer potential capital gains tax*.
* Consult your tax advisor about your personal situation.
