» Financing News http://reddinghomes.biz Wed, 28 Jul 2010 23:18:55 +0000 en hourly 1 http://wordpress.org/?v=3.0 More details on CHF Access http://reddinghomes.biz/2009/11/04/more-details-on-chf-access/ http://reddinghomes.biz/2009/11/04/more-details-on-chf-access/#comments Thu, 05 Nov 2009 01:02:33 +0000 admin http://reddinghomes.biz/?p=116 signing-loan-docsAs close to 100% financing as we are likely to see again the CHF Access 99.5% home buyer financing opens the door to home ownership for many who earn sufficient income to make a monthly mortgage payment but have inadequate funds for a traditional down payment. The program has set aside $5,000,000 to fund second loans which bridge the gap between FHA financing limits and all but 1/2% of sales price. Here are a few more details to go along with yesterdays post, “No Savings? No Problem with CHF Access” .

Debt to income ratio adjusts based on credit score.

  • No Fico or under 620 score max DTI – 43%
  • 620 to 659 max DTI- 45%
  • 660 and over max DTI- 47%

The basic 3% second mortgage rate is fixed at 8.25% with credit score adjustments

  • No Fico or under 600 plus 2%
  • 600 to 619 plus 1.5%
  • 620 to 639 plus 1%
  • 640 to 659 plus .5%
  • 660 to 679 plus .25%
  • 680 and over plus 0%

The 1st mortgage is a fully amortized 30 year fixed rate FHA loan.  The adjustments above apply to the 3% second only.

Keep in mind that there is no pre-pay penalty on either 1st or 2nd and paying off 2nd loan with tax credit (if applicable) after close of escrow is an option to keep monthly house payment lower.

Even with $5,000,000 set aside for this program it won’t last forever. If you are renting now I highly encourage you to give us a call for more information on buying your first home. (530) 224-6702 or email reddinghomes@gmail.com

]]> http://reddinghomes.biz/2009/11/04/more-details-on-chf-access/feed/ 0 No Savings? No Problem with CHF Access http://reddinghomes.biz/2009/11/03/no-savings-no-problem-with-chf-access/ http://reddinghomes.biz/2009/11/03/no-savings-no-problem-with-chf-access/#comments Tue, 03 Nov 2009 20:09:35 +0000 admin http://reddinghomes.biz/?p=54

EHO logo With CHF Access financing Homeownership may be just around the corner. The CHF Access program provides 99.5% fixed rate financing by blending a 96.5% FHA first mortgage with a 3% CHF Access second. This program is limited to a primary residence but is not limited to only first time buyers.

  • Just .05% (1/2%) minimum down payment.
  • Down payment can be gifted from family member.
  • No Prepayment penalty on 1st or 2nd mortgage.
  • Not limited to first-time homebuyers.
  • Eligible 2 years after a bankruptcy and 3 years after foreclosure.
  • On-line homebuyer education required.
  • Seller may contribute up to 6% towards buyer closing costs.
  • Income limit of $66,840 in Shasta County.
  • Use on FHA approved SFR, Condo, Manufactured Homes.
  • Purchase price up to $417,000

Combine the CHF Access program with the proposed first-time homebuyer or move-up homebuyer tax credit being considered by congress and a purchase could look something like this;

  • Purchase price $150,000
  • Down payment $750 which can be gifted from family member.
  • Seller contribution up to $9,000 towards your closing costs.
  • First Mortgage of $144,750
  • Second Mortgage of $4,500
  • Refundable Tax Credit(Proposed, $8,000 first-time buyers, $6,500 for move-up buyers.)
In this scenario if buyer uses the proposed homebuyer tax credit to pay off 2nd mortgage (no pre-pay) and the seller contribution covers all buyer closing costs (which is very likely) the buyer is left with a net gain on the sale after receiving tax credit.. $8,000 – $750 down payment – $4,500 second mortgage = $2,750 in buyers pocket.
Keep in mind that this is just a sample scenario and exact figures are subject to your credit, the purchase agreement, passing of propossed tax credit and other factors. Contact us for a referral to a participating lenders.
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