Awesome Loan Programs
Awesome loans Introduction
There are lots of really awesome loan programs coming out right now that can help buyers get a lot more house for their money. The ones I'am going to write about in my website are the Acorn Housing Program, The Oregon Bond, The Down payment Assistance Program for the Portland Urban Renewal Programs, the Portland Housing, USDA Rural 100% Financing and FHA. There are a few 100% Financing Programs available right now- but not too many!
FHA loans are an outstanding choice for first time homebuyers because FHA loans require only 3% cash (which may be a gift) and are more forgiving of past credit issues. FHA loans look at the last two years of your credit history. If there are some credit problems, FHA loans can overcome them with explanations and supporting documents. FHA requires any outstanding collection accounts be paid before closing. If you have had some credit difficulties in the past, FHA loans compensating factors can get you approved.
There are some credit issues that must allow time to pass before you can qualify for them..
IDA-Individual Development Account
This is a savings program that provides a savings match for certain individuals. Program participants save money in a special account that PHC monitors and at the end of the savings period these funds are matched 3:1 and may be used for down payment and closing costs on a home. Certain restrictions apply.
Second Mortgage Loan Programs
These programs provide assistance for the down payment and closing costs when purchasing your first home.
Mortgage Assistance Program-MAP 80
If you are buying a home in Multnomah or Washington County, PHC can help. With only $500 as your down payment, you can purchase a home with the use of our MAP 80 program and receive a low, fixed interest rate loan of up to $50,000 for down payment and closing costs.
Mortgage Assistance Program-MAP 100
If you are interested in buying a home in Multnomah County and your annual household income is $67,500- for a family of 4 or less, PHC can help. With only $500 as your down payment, you can purchase a house with the use of our MAP 100 program. With a low, stable fixed interest rates loan of up to $50,000 for down payment and closing costs.
Portland housing has classes to help you learn what you need to know about Home Buying
Click here to go to their website : http://www.portlandhousingcenter.org/services/financial-assisstance.cfm
USDA RURAL HOUSING-100% Financing!
Call Hayley for more information! She specializes in the Rural areas and Loans!
Section 502 and Rural Housing Direct Loans
are loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. The applicants can have an income of 115% of the median income for the area. They must be able to afford mortgage payments including taxes and insurance. In addition, applicants must have reasonable credit histories. Terms: Loans are for 30 -38 years. There is no required down payment. How is the payment determined? Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans. Purpose: To help people with low income buy and fix up homes in rural areas.
Maps Showing Eligibility 2009:
Yamhill County: http://eligibility.sc.egov.usda.gov/eligibility/eligibilityAction.do?pageAction=countyMap&st=41&state=OR&cnty=071
Washington County: http://eligibility.sc.egov.usda.gov/eligibility/eligibilityAction.do?pageAction=countyMap&st=41&state=OR&cnty=067
Clackamas County: http://eligibility.sc.egov.usda.gov/eligibility/eligibilityAction.do?pageAction=countyMap&st=41&state=OR&cnty=005
There are other counties available by Clicking Here. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1.
Oregon Bond and Down Payment Assistance
Go to their website to learn more:http://www.oregonbond.us/OHCS/SFF_Homebuying_Downpayment_Assistance_Programs.shtml
The income limits for the Oregon Bond and Portland Housing are about $79,000 per year for a family of 2 in Multnomah and Washington Counties and $91,000 per year for a family of 3 or more. The rates are as low as they get-You can check the current rate by going to their website at http://www.oregon.gov/OHCS/SFF_Homebuying_Low_Interest_Home_Loans.shtml
They also have the down payment assistance program- this is taken from their website: http://www.oregonbond.us/OHCS/SFF_Homebuying_Low_Interest_Home_Loans.shtml
The best one of all is the 20% Down payment Assistance Program for houses that fall in certain Urban Renewal areas targeted by the Portland Development Commission. This assistance actually lends you up to 20% of your purchase price of the home, at no interest, that doesn't have to be paid back until you sell your home! Along with this goes the Tax Abatement Programâ€¦.which means really low taxes for up to 11 years, and also the home improvement loan program to fix up your house- at low or no interest and not needed to pay back until you sell the house!
Sound too good to be true? It does to me too. But it is true. And if you are within the income range that qualifies, and buy a house in one of the targeted areas, you can benefit from it! These areas are the Lents neighborhood, which is basically from SE Powell to Flavel, and from SE 76th to SE 122nd. There is also the Interstate Corridor in North Portland which is out near the Max and north of Lombard. And the Gateway District, which is a crazily shaped area that is impossible to describe- but it is out in Gateway along the 205 Corridor. You can see the maps by going to the Portland Development Commission Website- or just contact me and I will help you find houses that are for sale in the areas.
Through the Portland Housing Commission and Oregon Bond there are other programs available:
Home Purchase Assistance Program HPAP
Purchase Assistance Loan PAL
PAL is a secondary loan from OHCS to help low-income first time homebuyers come up with the cash they need to pay their closing costs and down payment.Host is another program that offers help either $5000 credit for down payment, or some of it's homes qualify for the 20% down. It's name comes from Homeownership One Street at a Time (HOST) 503.331.1752.
Mortgage Assistance Program (MAP)
Sometimes a slight drop in the monthly house payment is all you need to afford purchasing your first home in the City or Portland. MAP eliminates the need for some types of mortgage insurance and may reduce your overall interest rate. The maximum loan amount is $50,000.
Individual Savings Account (IDA)
The IDA program is a 3:1 matched savings program for individuals under the 80% median income. Program participants save money in a special account that we monitor. These funds may be used for down payment and closing costs on a home.
Eligible PropertyTo be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
Learn more at http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
VA or Veteran LoansThere are several reasons why a VA loan may be preferable to a standard loan. Most important, if you qualify, you may obtain a VA loan even if you did not qualify for other loans. There may be no down payment required for a VA loan, depending on the lender. VA loans rates are often lower interest rates than conventional loans, and many times you can negotiate the interest rate with the lender. There are no mortgage insurance premiums on VA loans, and assumable mortgages are permitted. Closing costs can be lower than other forms of financing, and there is no penalty for prepaying your mortgage, as in some other forms of loans. In addition, VA assistance is available to those who qualify if temporary financial difficulty occurs.
The basic entitlement of a VA loan is $36,000, but some loans are eligible for $60,000 if they are over $144,000. A lender will often loan up to four times the amount of the basic entitlement without requiring a down payment.
Limit increase! Although there is no set maximum limit the VA allows you to borrow with your entitlement, most lenders and financial institutions will not approve a total of over $417,000. Lenders typically sell VA loans in a secondary market, where the cap for a loan limit is $417,000.
Veterans who have already taken out a VA home loan in the past may be eligible for remaining entitlement for any unused previous balance. Because entitlement amounts have increased over time, many people with prior VA loans may be eligible for more money now than they were previously. Complete our form or call us today to find out if you qualify.
Who qualifies? Criteria to qualify for a VA loan:
Construction LoansThese are loans used when you buy land and want to build a house on it. They are usually variable-rate loans priced at a spread to the prime rate or some other short-term interest rate. You, the contractor and the lender establish a draw schedule based on stages of construction, and interest is charged on the amount of money disbursed to date.
Another variable in construction loans is how much of the project cost the lender is willing to lend. If you already own the land, then that can be considered as equity on the construction loan.
Many homeowners use construction-to-permanent financing programs where the construction loan is converted to a mortgage loan after the certificate of occupancy is issued. The advantage is that you only have to have one application and one closing.
Depending on your view on interest rate trends, you could also purchase a rate-lock agreement valid through the expected completion of the construction. Just make sure you allow for the inevitable construction delays.
A construction loan, unlike a mortgage, isn't meant to be around for a long time. If you're taking out a $200,000 construction loan for six months and you pay an extra 0.5 percent on the loan, it costs you an additional $250. (Assumes an average $100,000 loan balance over a six-month construction period.)
You may be willing to pay a higher rate on the construction loan if you're doing construction-to-permanent financing and can get better mortgage terms or a longer, better rate lock from that lender.