No Down Payment

A major home builder in California, Kaufman & Broad Corporation, is offering 100% financing for home purchases.

The buyer would get a 95% conventional 30 year adjustable rate mortgage, and a 5% five-year, fixed rate, 14% unsecured loan for the balance. Closing costs would be refunded.

The maximum amount that can be borrowed is $315,000.

The loan is aimed at homebuyers such as young working couples who have large incomes but no savings, according to the president of the construction company.

Copyright © 1995 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 5, No. 8, 5/95