I'm a broker that has been working in residential real estate for over 30 years, and in those 30 years I have never seen a loan like this one.  I know this program works because I have clients that have used it and have been very happy with the results.  With this loan they were able to buy more home than they originally thought they could afford, or purchased one with lower monthly payments than they thought possible. They save thousands of dollars in closing costs and down payment.