Five 100 Percent Financing Loans

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Five 100 Percent Financing Loans

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Five 100 Percent Financing Loans

  1. 1. Five 100% Financing Loans You Should Know About <ul><li>Thank you for attending </li></ul><ul><li>We will begin in a moment </li></ul><ul><li>Class Scheduled to begin at 10:00am </li></ul><ul><li>Presented by </li></ul><ul><li>Scott Schang </li></ul><ul><li>Sponsored by </li></ul><ul><li>Broadview Mortgage Corporation </li></ul><ul><li>1-866-667-6724 </li></ul>
  2. 2. Five 100% Financing Loans <ul><li>Topics We Will Cover In This Class </li></ul><ul><li>Types of 100% Financing Available </li></ul><ul><li>Five 100% Financing Loan Programs </li></ul><ul><li>Community Seconds – Mortgage Credit Certificates </li></ul><ul><li>Getting Approved for Low and No Down Financing </li></ul><ul><li>Wrap Up and Take Aways </li></ul><ul><li>Schedule of Upcoming Classes </li></ul>
  3. 3. Five 100% Financing Loans <ul><li>The Purpose and Goals of this Class </li></ul><ul><li>To Create and Empower Home Owners </li></ul><ul><li>Educate you about the Specialty Financing Options that allow and provide for 100% financing </li></ul><ul><li>Empower you with the ability to make informed decisions throughout the home buying process </li></ul><ul><li>Introduce you to Broadview Mortgage Corporation as Homeownership Education Experts </li></ul>
  4. 4. Five 100% Financing Loans <ul><li>Ask Questions throughout presentation </li></ul><ul><li>You may type questions in at any time during the presentation – Questions box on your screen </li></ul><ul><li>Homebuyer specialists are standing by to answer your questions during the presentation </li></ul><ul><li>This is an interactive learning environment. You will get the most value by having your specific questions answered </li></ul><ul><li>The only dumb question is the one you don’t ask </li></ul><ul><li>Write number down now in case you get disconnected </li></ul><ul><ul><li>1-866-667-6724 </li></ul></ul>
  5. 5. Five 100% Financing Loans <ul><li>Types of 100% Financing Available </li></ul><ul><li>100% First Mortgage Loans – No other liens </li></ul><ul><ul><li>VA Loans </li></ul></ul><ul><ul><li>USDA Loans </li></ul></ul><ul><ul><li>CalHFA – CSHLP & SMART </li></ul></ul><ul><li>100% First and Second Mortgages </li></ul><ul><ul><li>CalPERS FHA + CalPERS Personal Loan </li></ul></ul><ul><ul><li>FHA + Community 2 nd </li></ul></ul><ul><ul><li>Conventional – Fannie Mae / Freddie Mac + Community 2 nd </li></ul></ul><ul><li>City / County / State Assistance Programs </li></ul><ul><ul><li>First Time Homebuyer Programs - FTHB </li></ul></ul><ul><ul><li>Down Payment Assistance Programs – DPAP / DAP </li></ul></ul><ul><ul><li>Mortgage Assistance Programs – MAP </li></ul></ul><ul><li>Typically require specific qualifying requirements </li></ul>
  6. 6. Five 100% Financing Loans <ul><li>100% First Mortgage Loans – No other liens </li></ul><ul><li>VA – Veterans Administration Insured Loans </li></ul><ul><li>CalHFA – California Housing Finance Agency </li></ul><ul><ul><li>CSHLP - Community Stabilization Home Loan Program – Bank Owned Foreclosures </li></ul></ul><ul><li>CalHFA – California Housing Finance Agency </li></ul><ul><ul><li>SMART – CalHFA Owned Foreclosure Properties </li></ul></ul><ul><li>USDA – Rural Development Loans </li></ul>
  7. 7. Five 100% Financing Loans <ul><li>VA – Veterans Administration Insured Loans </li></ul><ul><li>100% Financing One Loan </li></ul><ul><ul><li>No Down Payment Required </li></ul></ul><ul><li>No Mortgage Insurance Required </li></ul><ul><li>Funding Fee is Required by Law </li></ul><ul><ul><li>Current funding fee is 2.15% - reduced with down payment </li></ul></ul><ul><ul><li>Can be financed into loan </li></ul></ul><ul><li>Increased loan limits reinstated under H.R.1 - 2009 </li></ul><ul><ul><li>Loan limits are determined by County – See link </li></ul></ul><ul><li>Closing costs may be financed in loan up to 102% </li></ul><ul><ul><li>No money out of pocket possible – Ask loan officer </li></ul></ul>
  8. 8. Five 100% Financing Loans <ul><li>VA – Veterans Administration Insured Loans </li></ul><ul><li>Active or Inactive Military – Honorable Discharge </li></ul><ul><li>No income or first time home buyer limits </li></ul><ul><li>Up to 4% seller concessions for closing costs </li></ul><ul><li>Rates set by lenders </li></ul><ul><li>Can purchase 1-4 Unit Properties </li></ul><ul><li>Must be Owner Occupied Only </li></ul>
  9. 9. Five 100% Financing Loans <ul><li>Community Stabilization Home Loan Program </li></ul><ul><li>CalHFA - California Housing Finance Agency </li></ul><ul><ul><li>One of two remaining CalHFA loan programs – See link </li></ul></ul><ul><ul><li>May use Conforming 100%, FHA, VA or USDA </li></ul></ul><ul><li>Below market prices offered on select Bank REO </li></ul><ul><ul><li>Citi, Fannie Mae, HomeEq Servicing, Premier Asset </li></ul></ul><ul><li>Properties are in lendable condition </li></ul><ul><ul><li>Cream of the crop homes only – not distressed homes </li></ul></ul><ul><li>No Down Payment Required </li></ul><ul><ul><li>100% financing </li></ul></ul><ul><ul><li>Maximum 103% CLTV – Closing cost assistance </li></ul></ul><ul><li>Minimum Credit Score 680 over 95% LTV </li></ul><ul><ul><li>660 if LTV is under 95% </li></ul></ul>
  10. 10. Five 100% Financing Loans <ul><li>Community Stabilization Home Loan Program </li></ul><ul><li>5.5% - 30 year fixed interest rate </li></ul><ul><li>Special discounted mortgage insurance </li></ul><ul><ul><li>.59% monthly mortgage insurance premium </li></ul></ul><ul><ul><li>No upfront mortgage insurance premium </li></ul></ul><ul><li>Can use seller concessions to cover closing costs </li></ul><ul><li>Must be a First Time Home Buyer </li></ul><ul><ul><li>Can not have owned a home in past 3 years </li></ul></ul><ul><ul><li>Exception is if home located in Federally designated “Targeted LMI Area” – See link </li></ul></ul><ul><li>Borrower must qualify as Low to Moderate Income </li></ul><ul><ul><li>LMI varies by number in household and county – See link </li></ul></ul><ul><li>Can use community seconds for down payment </li></ul>
  11. 11. Five 100% Financing Loans <ul><li>                </li></ul>Counties and Zip Codes for CLHLP Homes
  12. 12. Five 100% Financing Loans <ul><li>SMART – CalHFA REO Homes </li></ul><ul><li>CalHFA - California Housing Finance Agency </li></ul><ul><ul><li>One of two remaining CalHFA loan programs – See link </li></ul></ul><ul><ul><li>May use Conforming 100%, FHA, VA or USDA loans </li></ul></ul><ul><li>Below market prices offered for quick sales </li></ul><ul><li>Properties are in lendable condition </li></ul><ul><ul><li>Cream of the crop homes only – not distressed homes </li></ul></ul><ul><li>No Down Payment Required </li></ul><ul><ul><li>100% financing </li></ul></ul><ul><ul><li>Maximum 102% CLTV – Closing cost assistance </li></ul></ul><ul><li>Minimum Credit Score 680 over 95% LTV </li></ul><ul><ul><li>660 if LTV is under 95% </li></ul></ul>
  13. 13. Five 100% Financing Loans <ul><li>SMART – CalHFA REO Homes </li></ul><ul><li>5.5% - 30 year fixed interest rate </li></ul><ul><li>Monthly mortgage insurance required </li></ul><ul><ul><li>.96% monthly mortgage insurance premium </li></ul></ul><ul><ul><li>No upfront mortgage insurance premium </li></ul></ul><ul><li>Can use seller concessions to cover closing costs </li></ul><ul><li>Must be a First Time Home Buyer </li></ul><ul><ul><li>Can not have owned a home in past 3 years </li></ul></ul><ul><ul><li>Exception is if home located in Federally designated “Targeted LMI Area” – See link </li></ul></ul><ul><li>Borrower must qualify as Low to Moderate Income </li></ul><ul><ul><li>LMI varies by number in household and county – see link </li></ul></ul><ul><li>Can use community seconds for down payment </li></ul>
  14. 14. Five 100% Financing Loans <ul><li>USDA – Rural Housing Development Program </li></ul><ul><li>Home must be located in a Rural area </li></ul><ul><ul><li>Open country and places with population of 10,000 or less </li></ul></ul><ul><ul><li>Under certain conditions, towns and cities with between 10,000 and 25,000 residents may be eligible </li></ul></ul><ul><ul><li>Property can not be used as income producing - crops or livestock </li></ul></ul><ul><li>USDA Rural Development field offices can determine eligible areas – See link </li></ul><ul><li>100% One loan financing – 2% Guarantee Fee </li></ul><ul><ul><li>102% maximum LTV if Guaranty Fee is financed </li></ul></ul><ul><li>No monthly recurring monthly expense charged for guaranteeing the loan – No mortgage insurance </li></ul>
  15. 15. Five 100% Financing Loans <ul><li>USDA – Rural Housing Development Program </li></ul><ul><li>No specific credit score requirements </li></ul><ul><ul><li>Applicants must have a credit history that indicates a reasonable ability and willingness to meet obligation as they become due </li></ul></ul><ul><li>Debt to Income Requirements </li></ul><ul><ul><li>Housing expenses not to exceed 29% - PITI / Gross income </li></ul></ul><ul><ul><li>Household expenses not to exceed 41% </li></ul></ul><ul><li>Debt to Income Requirement Waiver </li></ul><ul><ul><li>Compensating Factors </li></ul></ul><ul><ul><li>Credit score of 660 or higher </li></ul></ul><ul><ul><li>Cash reserves after close </li></ul></ul><ul><ul><li>Similar housing expenditure – low payment shock </li></ul></ul><ul><ul><li>Potential for increased earning and career advancement </li></ul></ul>
  16. 16. Five 100% Financing Loans <ul><li>USDA – Rural Housing Development Program </li></ul><ul><li>Adjusted annual household income can not exceed the moderate income – See link </li></ul><ul><ul><li>Total gross income of applicant, co-applicant and any other adults in the household </li></ul></ul><ul><ul><li>Minus certain adjustments such as child care expenses </li></ul></ul><ul><li>30 Year fixed rate mortgage at market rates </li></ul><ul><li>Must be owner occupied </li></ul><ul><li>Seller may contribute to the buyer’s closing costs </li></ul><ul><li>Loan may include closing costs and guarantee fee if appraised value is higher than sales price </li></ul>
  17. 17. Five 100% Financing Loans <ul><li>CalPERS FHA with CalPERS Personal Loan </li></ul><ul><li>Eligible Borrowers </li></ul><ul><ul><li>Active or inactive members of CalPERS, LRS and JRS </li></ul></ul><ul><ul><li>Retired and annuitants members, and Tier Two Member whose contributions are service credits are not eligible for the Personal Loan </li></ul></ul><ul><li>Down Payment Assistance Program </li></ul><ul><ul><li>Available to take out for the purposes of contributing to down payment only – Not closing costs </li></ul></ul><ul><ul><li>CalPERS Personal Loan is secured by Member’s retirement account with a pledge agreement </li></ul></ul><ul><li>Funds are not withdrawn from Member’s account </li></ul><ul><ul><li>Pension used as collateral CalPERS Personal Loan </li></ul></ul><ul><li>No lien is placed against the property </li></ul>
  18. 18. Five 100% Financing Loans <ul><li>CalPERS FHA with CalPERS Personal Loan </li></ul><ul><li>Maximum purchase price $350,000 </li></ul><ul><li>Use CalPERS FHA 1 st - Maximum 96.5% LTV </li></ul><ul><ul><li>Personal loan up to 5% of value of home </li></ul></ul><ul><li>Up to 50% of Member’s current contribution </li></ul><ul><ul><li>Minimum loan is $1,000 </li></ul></ul><ul><ul><li>Maximum loan is $18,421 </li></ul></ul><ul><li>Eligible Properties </li></ul><ul><ul><ul><li>Single family residence - Detached </li></ul></ul></ul><ul><ul><ul><li>Condominiums - Attached </li></ul></ul></ul><ul><ul><ul><li>Planned Urban Development – PUD </li></ul></ul></ul><ul><li>No multi family properties - 2 to 4 units not eligible </li></ul>
  19. 19. Five 100% Financing Loans <ul><li>CalPERS FHA with CalPERS Personal Loan </li></ul><ul><li>Must be occupied as principle residence </li></ul><ul><li>Personal Loan Type </li></ul><ul><ul><li>Personal loan is fixed rate, fully amortized </li></ul></ul><ul><li>Loan Term </li></ul><ul><ul><li>Loan term is determined by loan amount </li></ul></ul><ul><ul><ul><li>$1,000 - $1,499 3 Years </li></ul></ul></ul><ul><ul><ul><li>$1,500 - $2,999 4 Years </li></ul></ul></ul><ul><ul><ul><li>$3,000 - $4,999 5 Years </li></ul></ul></ul><ul><ul><ul><li>$5,000 - $9,999 10 Years </li></ul></ul></ul><ul><ul><ul><li>$10,000 - $18,421 15 Years </li></ul></ul></ul><ul><li>Minimum loan term is 1 year / Max is 15 years </li></ul>
  20. 20. Five 100% Financing Loans <ul><li>Community Seconds – DPA / DPAP / MAP </li></ul><ul><li>State Offered – California Housing Finance Agency </li></ul><ul><ul><li>All down payment assistance temporarily suspended </li></ul></ul><ul><ul><li>SMART and CSHLP still available </li></ul></ul><ul><li>Most Counties offer down payment assistance </li></ul><ul><li>Many Cities offer down payment assistance </li></ul><ul><ul><li>Those that do not use County programs </li></ul></ul><ul><li>Often very difficult to find information </li></ul><ul><ul><li>Search city / county website under departments </li></ul></ul><ul><ul><li>Look for housing department or community development </li></ul></ul><ul><li>We have created a site – www.CDPAP.com </li></ul><ul><ul><li>www.CaliforniaDownPaymentAssistancePrograms.com </li></ul></ul><ul><ul><li>Over 100 currently listed and updated daily </li></ul></ul>
  21. 21. Five 100% Financing Loans <ul><li>Community Seconds – DPA / DPAP / MAP </li></ul><ul><li>Common Challenges with Community Seconds </li></ul><ul><ul><li>Funds are typically only available at beginning of fiscal year </li></ul></ul><ul><ul><li>Funds are limited and exhausted very quickly </li></ul></ul><ul><li>Common Qualification Requirements </li></ul><ul><ul><li>First time homebuyer requirement – exceptions are single parents and divorcee’s </li></ul></ul><ul><ul><li>Income limits – % of Area Median Income (AMI) is typical </li></ul></ul><ul><ul><li>Purchase price limits </li></ul></ul><ul><li>Common Features of Down Payment Assistance </li></ul><ul><ul><li>May require minimum contribution by buyer – 1% common </li></ul></ul><ul><ul><li>Usually silent second mortgage – no payments for life </li></ul></ul><ul><ul><li>May become Grant and forgiven after period – 15/30 years </li></ul></ul><ul><ul><li>Can be in any amount - $1,000 to over $100,000 </li></ul></ul><ul><ul><li>Often include “equity share” clause – sell or refi </li></ul></ul>
  22. 22. Five 100% Financing Loans <ul><li>Mortgage Credit Certificates - MCC </li></ul><ul><li>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 </li></ul><ul><li>This tax credit allows the buyer to qualify more easily for a loan by increasing effective income of the buyer </li></ul><ul><li>The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence </li></ul><ul><li>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. </li></ul>
  23. 23. Five 100% Financing Loans <ul><li>Mortgage Credit Certificates - MCC </li></ul><ul><li>MCC Programs typically include a recapture provision which provides for a return of tax credits taken if the property ceases to be the borrower’s primary residence within recapture period </li></ul><ul><ul><li>County of Riverside is 9 years </li></ul></ul><ul><li>The amount of tax recapture is determined by formula, and provided to the borrower at the time the application is taken. </li></ul><ul><li>After expiration of the recapture period, the borrower may dispense of the property without incurring penalty, but would lose the future benefits of the MCC. </li></ul>
  24. 24. Five 100% Financing Loans <ul><li>Mortgage Credit Certificates - MCC </li></ul><ul><li>The three basic qualifications are: </li></ul><ul><li>(1) The borrower must be a First Time Home Buyer; </li></ul><ul><li>(2) The borrowers annual income must fall within the program income limits; and </li></ul><ul><li>(3) The home being purchased must fall within the program purchase price limits. </li></ul><ul><ul><li>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. </li></ul></ul>
  25. 25. Five 100% Financing Loans <ul><li>Getting Approved for Low and No Down Financing </li></ul><ul><li>Some programs require you “belong” to qualify </li></ul><ul><ul><li>Public Employees Retirement System / Veteran Admin </li></ul></ul><ul><li>May have to purchase certain homes in certain areas </li></ul><ul><ul><li>USDA - Must be in Rural area </li></ul></ul><ul><ul><li>CSHLP / SMART - Only specific properties available </li></ul></ul><ul><li>May have to meet certain qualifying guidelines </li></ul><ul><ul><li>Specific debt to income ratios </li></ul></ul><ul><ul><li>Minimum credit scores </li></ul></ul><ul><ul><li>Income limitations </li></ul></ul><ul><ul><li>First time homebuyer restrictions </li></ul></ul><ul><li>Must be approved for purchase loan first </li></ul><ul><ul><li>Community seconds </li></ul></ul><ul><ul><li>Mortgage credit certificates </li></ul></ul>
  26. 26. Five 100% Financing Loans <ul><li>Getting Approved for Low and No Down Financing </li></ul><ul><li>Many of these programs require lender be approved to offer such programs – Not all lenders qualify </li></ul><ul><ul><li>FHA / VA / USDA / CalHFA / CalPERS / CalSTRS </li></ul></ul><ul><ul><li>Community seconds and MCC may require lender approval </li></ul></ul><ul><li>Get approved for purchase loan financing FIRST </li></ul><ul><ul><li>All loan programs require that you qualify for a loan </li></ul></ul><ul><ul><li>We will research all applicable loan options available to you </li></ul></ul><ul><ul><li>You may qualify for more than one option – compare </li></ul></ul><ul><ul><li>We will also research down payment assistance options available to you based on approval </li></ul></ul><ul><li>Broadview Mortgage is an Approved Lender </li></ul><ul><ul><li>Apply on-line or over the phone in minutes </li></ul></ul>
  27. 27. Five 100% Financing Loans <ul><li>Wrap up and Take Aways </li></ul><ul><li>We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA, Community seconds programs, MCC programs and homeownership education </li></ul><ul><li>We are more than happy to be your “second opinion” if you are already working with someone </li></ul><ul><li>We are more than happy to refer you to a qualified Real Estate Agent that shares our values for education and empowerment </li></ul><ul><li>We are committed to educating and empowering homeowners - Join us for future classes </li></ul>
  28. 28. Five 100% Financing Loans <ul><li>Wrap up and Take Aways </li></ul><ul><li>You will receive a “Thank you” email with links to the information we’ve talked about here today including </li></ul><ul><ul><li>Copy of power point presentation </li></ul></ul><ul><ul><li>Secure on-line loan application </li></ul></ul><ul><ul><li>Links to all the topics we discussed in class </li></ul></ul><ul><ul><li>Dream Home Finder request </li></ul></ul><ul><ul><li>Link to more information about Tax Credit </li></ul></ul><ul><ul><li>A schedule of all upcoming classes </li></ul></ul>
  29. 29. Upcoming Homebuyer Classes <ul><li>Hiring a Real Estate Agent and Finding the Best Deals </li></ul><ul><li>A Complete Guide to Closing Costs and the Good Faith Estimate </li></ul><ul><li>A Complete Guide to Buying Foreclosures and Short Sales </li></ul><ul><li>A Complete Guide to FHA Purchase Loans </li></ul><ul><li>A Complete Guide to the CalPERS Home Loan Program </li></ul><ul><li>Five 100% Financing Loans You Should Know About </li></ul><ul><li>Working to record and archive all classes for viewing anytime – I will keep you updated </li></ul><ul><li>Check back often for upcoming classes </li></ul>
  30. 30. Thank You for Attending If you enjoyed this class – Tell a friend  <ul><li>Your input is Valuable </li></ul><ul><li>Please complete 2 question survey when you log off </li></ul><ul><li>For more information </li></ul><ul><li>1-866-667-6724 </li></ul><ul><li>Presented by </li></ul><ul><li>Scott Schang </li></ul><ul><li>Sponsored by </li></ul><ul><li>Broadview Mortgage Corporation </li></ul>

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