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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

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..

  • Two years from the date of discharge for a bankruptcy
  • Three years from the date of foreclosure

ADVANTAGES

  • They are assumable, With their no cost streamlined refinancing you can lower your payment at NO COST to you.
  • The ARM has the best features on the market with a 1% annual interest rate cap and a 5% lifetime cap.
  • Lower required down payment
  • Higher qualifying ratios of 29% for housing and 41% for total indebtedness
  • More flexible underwriting standards
  • Gift funds for down payment and closing costs are allowed
  • Up-front Mortgage Insurance Premium can be financed
  • Less cash out of pocket required
  • The lowest down payment (as low as 3%, never more than 5%) requirement of any non-subsidized financing program
  • Seller allowed to pay prepaid expenses and can contribute up to 6% of buyers closing costs and prepaids!

Portland Housing

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.

The Advantages:

  • Loan closings within normal time frame.
  • Lenders control the closing.
  • Loan up to appraised value plus the guarantee fee.
  • Include closing costs/repairs/renovations in the loan.
  • No need to increase contract price for seller paid closing costs.
  • No monthly mortgage insurance (MI).
  • Maximum loan amount is 100% of the appraised value plus the one time guarantee fee of 2% (up to 102% LTV)
  • No cash contribution or cash reserves required from applicant.
  • Non-traditional credit may substitute for lack of traditional credit history.
  • No minimum credit score.
  • Repayment ratios are 29/41.
  • Ratio waivers are allowed with documented compensating factors.
  • Not limited to first-time home buyers.
  • Competitive market based fixed interest rates with 30 year term.
  • No need to change lender relationships.
  • Any lender can originate loans through an Agency approved lender.

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
The Oregon Bond Program has been around for a long time. It is a really good program to help people buy their first house if their income is moderate to low. The interest rates are low, and there is help with the down payment! Right now they are out of funds, but will be taking applications this summer 2009!

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

An Overview
Down payment Assistance Programs (DAPs) are intended to help eligible borrowers come up with the cash they need to close the loan. Most down payment assistance programs are limited to serving low-income first-time homebuyers, who earn 80% of the area median income or less adjusted for household size. OHCS sponsors two programs as described below:

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 Program….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
HPAP is a statewide down payment and closing cost assistance program specifically for low-income first-time homebuyers. For more information, contact the Oregon Banker's Association at (503) 581-3522 to find out about upcoming classes in your area.

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.
Here is the Portland Housing website so you can learn more about these programs: http://www.portlandhousingcenter.org/
Here are some other FHA Loans:

203(k) LOAN for Rehabs Taken from the HUD website
203(k) - How It Is Different
Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.

Eligible Property

To 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 Loans

There 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:
  • Active-duty veterans discharged during WWII or later, without the status of "dishonorable"
  • Active-duty veterans with at least 90 consecutive days of service during major conflict
  • Peacetime veterans and active duty personnel with at least 180 days of consecutive service
  • Enlisted veterans whose service began after 1980 or officers whose service began after 1981 and who have served at least 2 years.
National Guard and Selected Reserve members may also qualify.

Construction Loans

These 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.
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