Five 100% Financing Loans You Should Know About
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Five 100% Financing Loans You Should Know About

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There are several relatively unknown options that still allow for home buyers in the State of California to finance 100% of the purchase price of a new home. ...

There are several relatively unknown options that still allow for home buyers in the State of California to finance 100% of the purchase price of a new home.

These are the slides from the online webinar, please feel free to contact us for questions or more information

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Five 100% Financing Loans You Should Know About Presentation Transcript

  • 1. Five 100% Financing Loans You Should Know About
    • Thank you for attending
    • We will begin in a moment
    • Class Scheduled to begin at : 6:00pm
    • Presented by
    • Scott Schang
    • Branch Manager
    • Broadview Mortgage Corporation
    • 1-866-667-6724
  • 2. Five 100% Financing Loans
    • The Purpose and Goals of this Class
    • To Create and Empower Home Owners
    • Educate you about the Specialty Financing Options that allow and provide for 100% financing
    • Empower you with the ability to make informed decisions throughout the home buying process
  • 3. Five 100% Financing Loans
    • Topics We Will Cover In This Class
    • Types of 100% Financing Available
    • Five 100% Financing Loan Programs
    • Community Seconds – Mortgage Credit Certificates
    • Getting Approved for Low and No Down Financing
    • Wrap Up and Take Aways
    • Schedule of Upcoming Classes
  • 4. Five 100% Financing Loans
    • Ask Questions throughout presentation
    • You may type questions in at any time during the presentation – Questions box on your screen
    • Homebuyer specialists are standing by to answer your questions during the presentation
    • This is an interactive learning environment. You will get the most value by having your specific questions answered
    • The only dumb question is the one you don’t ask
    • Write number down now in case you get disconnected
      • 1-866-667-6724
  • 5. Five 100% Financing Loans
    • Types of 100% Financing Available
    • 100% First Mortgage Loans – No other liens
      • VA Loans
      • USDA Loans
      • CalHFA – CSHLP & SMART
    • 100% First and Second Mortgages
      • CalPERS FHA + CalPERS Personal Loan
      • FHA + Community 2 nd
      • Conventional – Fannie Mae / Freddie Mac + Community 2 nd
    • City / County / State Assistance Programs
      • First Time Homebuyer Programs - FTHB
      • Down Payment Assistance Programs – DPAP / DAP
      • Mortgage Assistance Programs – MAP
    • Typically require specific qualifying requirements
  • 6. Five 100% Financing Loans
    • 100% First Mortgage Loans – No other liens
    • VA – Veterans Administration Insured Loans
    • CalHFA – California Housing Finance Agency
      • CSHLP - Community Stabilization Home Loan Program – Bank Owned Foreclosures
    • CalHFA – California Housing Finance Agency
      • SMART – CalHFA Owned Foreclosure Properties
    • USDA – Rural Development Loans
  • 7. Five 100% Financing Loans
    • VA – Veterans Administration Insured Loans
    • 100% Financing One Loan
      • No Down Payment Required
    • No Mortgage Insurance Required
    • Funding Fee is Required by Law
      • Current funding fee is 2.15% - reduced with down payment
      • Can be financed into loan
    • Increased loan limits reinstated under H.R.1 - 2009
      • Loan limits are determined by County – See link
    • Closing costs may be financed in loan up to 102%
      • No money out of pocket possible – Ask loan officer
  • 8. Five 100% Financing Loans
    • VA – Veterans Administration Insured Loans
    • Active or Inactive Military – Honorable Discharge
    • No income or first time home buyer limits
    • Up to 4% seller concessions for closing costs
    • Rates set by lenders
    • Can purchase 1-4 Unit Properties
    • Must be Owner Occupied Only
  • 9. Five 100% Financing Loans
    • Community Stabilization Home Loan Program
    • CalHFA - California Housing Finance Agency
      • One of two remaining CalHFA loan programs – See link
      • May use Conforming 100%, FHA, VA or USDA
    • Below market prices offered on select Bank REO
      • Citi, Fannie Mae, HomeEq Servicing, Premier Asset
    • Properties are in lendable condition
      • Cream of the crop homes only – not distressed homes
    • No Down Payment Required
      • 100% financing
      • Maximum 103% CLTV – Closing cost assistance
    • Minimum Credit Score 680 over 95% LTV
      • 660 if LTV is under 95%
  • 10. Five 100% Financing Loans
    • Community Stabilization Home Loan Program
    • 5.5% - 30 year fixed interest rate
    • Special discounted mortgage insurance
      • .59% monthly mortgage insurance premium
      • No upfront mortgage insurance premium
    • Can use seller concessions to cover closing costs
    • Must be a First Time Home Buyer
      • Can not have owned a home in past 3 years
      • Exception is if home located in Federally designated “Targeted LMI Area” – See link
    • Borrower must qualify as Low to Moderate Income
      • LMI varies by number in household and county – See link
    • Can use community seconds for down payment
  • 11. Five 100% Financing Loans
    • SMART – CalHFA REO Homes
    • CalHFA - California Housing Finance Agency
      • One of two remaining CalHFA loan programs – See link
      • May use Conforming 100%, FHA, VA or USDA loans
    • Below market prices offered for quick sales
    • Properties are in lendable condition
      • Cream of the crop homes only – not distressed homes
    • No Down Payment Required
      • 100% financing
      • Maximum 102% CLTV – Closing cost assistance
    • Minimum Credit Score 680 over 95% LTV
      • 660 if LTV is under 95%
  • 12. Five 100% Financing Loans
    • SMART – CalHFA REO Homes
    • 5.5% - 30 year fixed interest rate
    • Monthly mortgage insurance required
      • .96% monthly mortgage insurance premium
      • No upfront mortgage insurance premium
    • Can use seller concessions to cover closing costs
    • Must be a First Time Home Buyer
      • Can not have owned a home in past 3 years
      • Exception is if home located in Federally designated “Targeted LMI Area” – See link
    • Borrower must qualify as Low to Moderate Income
      • LMI varies by number in household and county – see link
    • Can use community seconds for down payment
  • 13. Five 100% Financing Loans
    • USDA – Rural Housing Development Program
    • Home must be located in a Rural area
      • Open country and places with population of 10,000 or less
      • Under certain conditions, towns and cities with between 10,000 and 25,000 residents may be eligible
      • Property can not be used as income producing - crops or livestock
    • USDA Rural Development field offices can determine eligible areas – See link
    • 100% One loan financing – 2% Guarantee Fee
      • 102% maximum LTV if Guaranty Fee is financed
    • No monthly recurring monthly expense charged for guaranteeing the loan – No mortgage insurance
  • 14. Five 100% Financing Loans
    • USDA – Rural Housing Development Program
    • 30 Year fixed rate mortgage at market rates
    • Must be owner occupied
    • Seller may contribute to the buyer’s closing costs
    • Loan may include closing costs and guarantee fee if appraised value is higher than sales price
  • 15. Five 100% Financing Loans
    • CalPERS FHA with CalPERS Personal Loan
    • Eligible Borrowers
      • Active or inactive members of CalPERS, LRS and JRS
      • Retired and annuitants members, and Tier Two Member whose contributions are service credits are not eligible for the Personal Loan
    • Down Payment Assistance Program
      • Available to take out for the purposes of contributing to down payment only – Not closing costs
      • CalPERS Personal Loan is secured by Member’s retirement account with a pledge agreement
    • Funds are not withdrawn from Member’s account
      • Pension used as collateral CalPERS Personal Loan
    • No lien is placed against the property
  • 16. Five 100% Financing Loans
    • CalPERS FHA with CalPERS Personal Loan
    • Maximum purchase price $350,000
    • Use CalPERS FHA 1 st - Maximum 96.5% LTV
      • Personal loan up to 5% of value of home
    • Up to 50% of Member’s current contribution
      • Minimum loan is $1,000
      • Maximum loan is $18,421
    • Eligible Properties
        • Single family residence - Detached
        • Condominiums - Attached
        • Planned Urban Development – PUD
    • No multi family properties - 2 to 4 units not eligible
  • 17. Five 100% Financing Loans
    • Community Seconds – DPA / DPAP / MAP
    • State Offered – California Housing Finance Agency
      • All down payment assistance temporarily suspended
      • SMART and CSHLP still available
    • Most Counties offer down payment assistance
    • Many Cities offer down payment assistance
      • Those that do not use County programs
    • Often very difficult to find information
      • Search city / county website under departments
      • Look for housing department or community development
    • We have created a site – www.CDPAP.com
      • www.CaliforniaDownPaymentAssistancePrograms.com
      • Over 180 currently listed and updated daily
  • 18. Five 100% Financing Loans
    • Community Seconds – DPA / DPAP / MAP
    • Common Challenges with Community Seconds
      • Funds are typically only available at beginning of fiscal year
      • Funds are limited and exhausted very quickly
    • Common Qualification Requirements
      • First time homebuyer requirement – exceptions are single parents and divorcee’s
      • Income limits – % of Area Median Income (AMI) is typical
      • Purchase price limits
    • Common Features of Down Payment Assistance
      • May require minimum contribution by buyer – 1% common
      • Usually silent second mortgage – no payments for life
      • May become Grant and forgiven after period – 15/30 years
      • Can be in any amount - $1,000 to over $100,000
      • Often include “equity share” clause – sell or refi
  • 19. Five 100% Financing Loans
    • Mortgage Credit Certificates - MCC
    • A Mortgage Credit Certificate (MCC) entitles qualified home buyers to reduce the amount of their federal income tax liability by an amount equal to a portion of the interest paid during the year on a home mortgage
    • This tax credit allows the buyer to qualify more easily for a loan by increasing effective income of the buyer
    • The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence
    • The MCC is not transferable to a new loan when refinancing, nor can it be assigned or transferred to a new buyer or another home.
  • 20. Five 100% Financing Loans
    • Mortgage Credit Certificates - MCC
    • The three basic qualifications are:
    • (1) The borrower must be a First Time Home Buyer;
    • (2) The borrowers annual income must fall within the program income limits; and
    • (3) The home being purchased must fall within the program purchase price limits.
      • If the home is located in a Target Area, then the first-time buyer limitation does not apply and the income and cost limits are higher.
  • 21. Five 100% Financing Loans
    • Getting Approved for Low and No Down Financing
    • Some programs require you “belong” to qualify
      • Public Employees Retirement System / Veteran Admin
    • May have to purchase certain homes in certain areas
      • USDA - Must be in Rural area
      • CSHLP / SMART - Only specific properties available
    • May have to meet certain qualifying guidelines
      • Specific debt to income ratios
      • Minimum credit scores
      • Income limitations
      • First time homebuyer restrictions
    • Must be approved for purchase loan first
      • Community seconds
      • Mortgage credit certificates
  • 22. Five 100% Financing Loans
    • Getting Approved for Low and No Down Financing
    • Many of these programs require lender be approved to offer such programs – Not all lenders qualify
      • FHA / VA / USDA / CalHFA / CalPERS / CalSTRS
      • Community seconds and MCC may require lender approval
    • Get approved for purchase loan financing FIRST
      • All loan programs require that you qualify for a loan
      • Research all applicable loan options available to you
      • You may qualify for more than one option – compare
      • Then, research down payment assistance options available to you based on approval
  • 23. Five 100% Financing Loans
    • Wrap up and Take Aways
    • We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA, Community seconds programs, MCC programs and homeownership education
    • We are more than happy to be your “second opinion” if you are already working with someone
    • We are more than happy to refer you to a qualified Real Estate Agent that shares our values for education and empowerment
  • 24. Five 100% Financing Loans
    • Wrap up and Take Aways
    • You will receive a “Thank you” email with links to the information we’ve talked about here today including
      • Copy of power point presentation
      • Secure on-line loan application
      • Links to all the topics we discussed in class
      • Dream Home Finder request
      • Link to more information about Tax Credit
      • A schedule of all upcoming classes
    • Link to YouTube explaining what we know so far about using the fed tax credit used as down payment
  • 25. Thank You for Attending If you enjoyed this class – Tell a friend 
    • Your input is Valuable
    • Please complete 2 question survey when you log off
    • For more information
    • 1-866-667-6724
    • Presented by
    • Scott Schang
    • Branch Manager
    • Broadview Mortgage Corporation