Programs to Reduce Home Costs & Qualify Buyers
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Transcript of Programs to Reduce Home Costs & Qualify Buyers
Can You Afford a House? A USDA loan is 1 option
I referred a buyer who received less than 750$/month but who wanted to stop renting for over $400/month to a loan program where she didn’t need a down payment, didn’t need to take practically anything if anything from savings which she didn’t really have, and paid 1% interest over 38 years.
She used a USDA direct loan, and was eligible for a home the same price that Luciano bought his for.
If you think that you might make too much for a USDA loan, consider this: Guaranteed loans (not USDA direct with 1% interest) have limits of 1 person making $84,300, and that’s for a single person household, with the numbers going up to over $110,000 depending on the size of your family.
Where can qualified buyers get a home with a USDA loan around here?
Sales Price Max:
Matthews $203,300James City County $217,000Gloucester $209,300New Kent County $209,000York County $221,200
Positives & Negatives with USDA Loans
Restrictive and not good for investment property you want to later rent out. I don’t recommend a USDA loan unless you’ll be there at least 5 years. While USDA is one of the main loans along with VA that requires no down payment, there are other alternatives that are less restrictive if you’d like a loan with no down payment requirement. One advantage of a loan with a down payment requirement is that if you need to move, you can rent it out more comfortably with a larger rent to mortgage margin. If you’ll be there at least 5 years, and your income is considered “very low”, especially if you are elderly or disabled, 1% interest with no down payment is hard to beat. Family Size 1 2 3 4 5 6 7 8
Income Max 25700 29350 33000 36650 39600 42550 45450 48400
VIDA Savings plan where they match 2 dollars for every one that you
put in for a down payment on a house, up to 4k.
NACA “No Downpayment – NACA mortgage offers a 100% financing of the
value of the property No Closing Costs. No Points. No Fees. Below Market, 30-year, Fixed Rate – the interest rate is less than the
market rate for a conventional “A” credit loan (3.625% as of 9/28/15)“Credit Score Not Considered (NACA Qualification
based on Member’s individual circumstances)” You must “occupy the home for as long as you have the NACA
Mortgage.” Credit/financial training included & required
Down Payment Assistance Grant –
Harder to get than VHDA Down Payment Assistance Grant that expired Sep 30th, and more restrictive, but more $ potentially, up to 10%
Max Income:1 person household: 41100 2 person: 46950 3 person: 52800 4 person: 58,650 5 person: 63,350 6 person: 68,050 7 person: 72,750 8 person: 77450
Mortgage Credit Certificate – Around til Dec 2016
Easy to qualify for, lots of savings as long as you live in the house
20% of the interest you pay credited back to you at the end of the year for the life of the loan as long as you live in the house
Think of a government subsidy credited back to you at the end of the year to essentially subsidize your house payment by 100-250$ per month initially for homes from 150k-375k. It also works with homes less than that. As you pay off your house, the interest you pay annually goes down very gradually, and so does the savings.
Income limit of $80,400 for household of 1-2, $93,800 for house of 3 or more
Loans with Banks
Navy Federal – No down payment loan up to 1 MILLION $Navy Federal can be hard to work with It’s better to go into a home with a down payment if
possible. Fidelity & Wells Fargo – NHF Platinum – 3-5% down
payment assistance grant. Unlike the VHDA down payment assistance grant, this is not free money since there’s a funding fee and it increases your rate. Income limit of $99,260 for standard conventional loans with lower limits for other loans.