The cash advantage loan will allow you to finance your home and receive a check up to 2% of the loan amount after closing. The benefits for this mortgage option would be if a first-time home buyer needed to furnish their new home or had minor home improvements.
When refinancing some borrowers only qualify for a rate and term refinance, with a cash advantage loan the borrower will still be able to receive 2-5% of the loan amount.
Many of our programs allow up to a 5% seller's concession on 100% purchases.
Cash advantage loans are useful for debt consolidation. Cash can be taken out to pay off high interest credit cards versus the lower interest rates available on mortgages. Plus the mortgage interests are tax deductible which means more savings.
In Texas no cash is allowed back to the borrower when refinancing unless the borrower is taking out a Texas home equity loan. Texas home equity loans are limited to 80% ltv of the property and have more stringent requirements.
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