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Five 100 Percent Financing Loans
 

Five 100 Percent Financing Loans

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Five 100 Percent Financing Loans

Five 100 Percent Financing Loans

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    Five 100 Percent Financing Loans Five 100 Percent Financing Loans Presentation Transcript

    • Five 100% Financing Loans You Should Know About
      • Thank you for attending
      • We will begin in a moment
      • Class Scheduled to begin at 10:00am
      • Presented by
      • Scott Schang
      • Sponsored by
      • Broadview Mortgage Corporation
      • 1-866-667-6724
    • 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
    • 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
      • Introduce you to Broadview Mortgage Corporation as Homeownership Education Experts
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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%
    • 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
    • Five 100% Financing Loans
      •                
      Counties and Zip Codes for CLHLP Homes
    • 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%
    • 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
    • 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
    • Five 100% Financing Loans
      • USDA – Rural Housing Development Program
      • No specific credit score requirements
        • Applicants must have a credit history that indicates a reasonable ability and willingness to meet obligation as they become due
      • Debt to Income Requirements
        • Housing expenses not to exceed 29% - PITI / Gross income
        • Household expenses not to exceed 41%
      • Debt to Income Requirement Waiver
        • Compensating Factors
        • Credit score of 660 or higher
        • Cash reserves after close
        • Similar housing expenditure – low payment shock
        • Potential for increased earning and career advancement
    • Five 100% Financing Loans
      • USDA – Rural Housing Development Program
      • Adjusted annual household income can not exceed the moderate income – See link
        • Total gross income of applicant, co-applicant and any other adults in the household
        • Minus certain adjustments such as child care expenses
      • 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
    • 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
    • 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
    • Five 100% Financing Loans
      • CalPERS FHA with CalPERS Personal Loan
      • Must be occupied as principle residence
      • Personal Loan Type
        • Personal loan is fixed rate, fully amortized
      • Loan Term
        • Loan term is determined by loan amount
          • $1,000 - $1,499 3 Years
          • $1,500 - $2,999 4 Years
          • $3,000 - $4,999 5 Years
          • $5,000 - $9,999 10 Years
          • $10,000 - $18,421 15 Years
      • Minimum loan term is 1 year / Max is 15 years
    • 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 100 currently listed and updated daily
    • 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
    • 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.
    • Five 100% Financing Loans
      • Mortgage Credit Certificates - MCC
      • 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
        • County of Riverside is 9 years
      • The amount of tax recapture is determined by formula, and provided to the borrower at the time the application is taken.
      • 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.
    • 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.
    • 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
    • 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
        • We will research all applicable loan options available to you
        • You may qualify for more than one option – compare
        • We will also research down payment assistance options available to you based on approval
      • Broadview Mortgage is an Approved Lender
        • Apply on-line or over the phone in minutes
    • 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
      • We are committed to educating and empowering homeowners - Join us for future classes
    • 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
    • Upcoming Homebuyer Classes
      • Hiring a Real Estate Agent and Finding the Best Deals
      • A Complete Guide to Closing Costs and the Good Faith Estimate
      • A Complete Guide to Buying Foreclosures and Short Sales
      • A Complete Guide to FHA Purchase Loans
      • A Complete Guide to the CalPERS Home Loan Program
      • Five 100% Financing Loans You Should Know About
      • Working to record and archive all classes for viewing anytime – I will keep you updated
      • Check back often for upcoming classes
    • 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
      • Sponsored by
      • Broadview Mortgage Corporation