It’s no secret, housing is difficult to afford, and at times it may seem impossible. Still struggling to pay off student debt, and paying your other bills, there just isn’t enough cash left to save for a down payment on a home. It seems there are only two options: Living with your parents or finding a cheap apartment. Let’s face it, you don’t want to live with your parents anymore, it’s time to move on. The idea of renting an apartment sounds nice, though with such little rent control in California, prices are starting to skyrocket.
We would like to introduce you to option 3; buying a home. It seems hopeless when in reality, it might be the best shot you have towards your independence. You see, we are able to give loans with absolutely zero down payment for a single family residence! The table shown below depicts how easy it is to qualify for this type of loan along with its corresponding interest rates. You only need to have a minimum FICO Score of 640 to be eligible.
FHA 100 Program:
The following credit and loan characteristics are intended to supplement any requirements listed within applicable FHA guidelines.
Minimum FICO Debt Ratio:
• No Credit Lates in previous 12 months
• Employment Gaps over 45 days are subject to Underwriter Discretion
• Only Occupying borrower income used in determining Area Median Income Loan Term Options: 30 / 25 / 20 Year Fixed Rate
Option #1: If the borrowers Household Income is equal to or less than 115% of the AMI (Area Median Income) the 2nd lien will be forgiven after 36 months of on time first mortgage payments, 2nd mortgage cannot be subordinated, if the 1st mortgage is refinanced or the property is converted to investment the lien must be paid in full.
Option #2: If the AMI is >115% the 2nd Mortgage must be repaid Rate/term of repayment is determined by the term (Example Terms: 10 years 0%, 15 years 3%, 20 years 4%, 30 years 5%), 2nd mortgage holder does not subordinate this lien, if the mortgage is refinanced or the property is converted to investment the lien must be paid in full.
Note: Properties in CA require the AMI to be under 115% and is not allowed the repayment option.
Eligible property types: Single Family Residence only
Eligible borrower types: US Citizens, Permanent Resident Aliens
Special notes: Min Loan Amount 75K, Max Loan Amount FHA County Limits (High Balance Accepted), up to 6% seller contribution.
What you need to know
The time to buy a house is now. The current rates are low and are anticipated to gradually rise with time. Couple these lower rates with an amazing zero down payment offer and buying a house is with GROW is less of a headache and more of a delight. Call today and get your new house!