 |
|||||||
 |
 |
||||
Loan Programs
Last month I covered creative ways to come up with a down payment. But what if none of those options is available to you? Community First Mortgage LLC is among a growing number of lenders with 100% to 103% financing available to help you realize the dream of home ownership. Financing a home with no money out of your own pocket can be tricky. If you plan on attempting such a feat, you should find a very experienced lender who has a background in this type of financing. Generally speaking you might have better luck with an institution that makes these kinds of loans directly, rather than working with a broker. Many such programs require the lending institution be on an approved list, which requires that company’s loan officers to receive specialized training. Some of the best options available are government sponsored through FHA or VA. The majority of mortgage brokers are not able to offer FHA or VA programs, because of the enormous capitalization requirements and liability exposure associated with them. One of the more popular “Nothing Down” options is provided in conjunction with a standard FHA loan. Down Payment Assistance programs, or DAPs, allow consumers to get standard FHA rates and programs, which keep the monthly payments down. What is unique is that they also allow for a grant from a non-profit or charity to be used for all of the down payment, and closing costs, including the tax and insurance escrows. The downside is that the seller is required to participate with the charity in question. That means you won’t have much flexibility in negotiating the price of the home, and may even have to offer slightly more than the asking price to achieve your goal. Community First Mortgage also carries the “Emerging Markets”, “Easy-to-Own”, “Flex 100” and “Home Asset Management” programs. These programs all allow conventional borrowers several additional options to choose from. “Emerging Markets” programs allow 100% financing in a single loan, while the “Home Asset Management” programs split the financing into an 80% - 1st mortgage and a 20% - 2nd mortgage. You can get 30 year fixed rates or 5, 7, and 10 year adjustable rate loans with either of these. However, some income and credit score limitations may apply. “Nothing Down” may not be for everyone, but with this many options to choose from you owe it to yourself to see if you qualify. This just may be the last month you ever write a rent check again! For expert advice on these or any other type of home financing, call the professional. Dan Smith can be reached at 303-674-2205. © Copyright 2004-2007 by ColoradoHomeLoans.com |
|
|||
