125% Purchase Financing - Cashout at Closing. Your Comments?

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Has anyone tried doing 125% financing? I recently moved to a mortgage company, Ace Mortgage, and they introduced me to a product I was unfamiliar with. It is 125% financing. From what I have seen, it fits the niche for buyers who are looking to purchase a property below market value and cashout at closing, while still being in the green. Is this the perfect loan?

I thought this was a crazy loan when I looked at it, but it makes complete sense. Suprisngly, I found about 10 lenders who offer the program through our company.

Let me know if you have tried this program and what your thoughts are on it. I am about to do my first 125% for a buyer and this will be my first experience with this type of loan.