0.5% down to purchase a home ...Fact or Fiction?

.5% down to purchase a home....Fact or Fiction?

2012 is already under way, and for those of us lucky enough to find ourselves in the field of real estate, this represents yet another opportunity to reach our career goals. Unbeknownst to many, it is possible to purchase a home for .5% down. As with any other loan program, especially a program as incredible as this one, there are some restrictions, meaning not everyone will qualify. Having the necessary information at your fingertips can make the difference between a “dead” file and one with newfound potential.

First things first, let us start off by addressing this loan by its actual name, which is the CHF Access 2nd, provided to the public by one of our strongest banking partners, First Mortgage Corporation (FMC). FMC has pulled out all of the stops with this particular program, essentially making it possible for just about anyone to realize their dream of home ownership. Although FMC has several notable loan programs worth garnering a second look, one of its best offerings is the CHF Access 2nd.

The CHF Access 2nd works hand-in-hand with its FHA loan program, which was originally designed to help low-to-moderate income families in the State of California realize home ownership. The program has simple mechanics; the borrower first gets qualified for an FHA loan, which traditionally covers 96.5% of the purchase price, and the CHF Access 2nd covers up to 3% of the remaining purchase price. This leaves a balance of .5%, which the borrower needs to come in with at the close of escrow, and those funds can be gifted, if needed.

The particulars of the CHF Access 2nd are as follows: the loan is amortized over 15 years, at a fixed rate of 8.25%. There is no prepayment penalty, so it can be paid off at any time, and, per FHA guidelines, up to 6% in seller contributions are allowed. Another interesting point to consider about the CHF Access 2nd is that aside from down payment assistance, these funds can also be used to help pay for closing costs, upfront MI or price adjustments. The guidelines for the income and additional qualifying requirements are available for review on the FMC website, or interested parties can email me directly for more information or to help answer other questions or concerns. Take advantage of this spectacular program today, and increase your working pipeline.

 

There has never been a better time to go back and review some of your stalled files to see if this program can't breathe some new life into them and turn that deal into your next paycheck.

Written By:

Melba Baquero
Broker Associate / Mortgage Loan Originator With Platinum Mortgage CompanyE-mail: Melba@ pmcmortgageloans.com.
Website: www.pmcmortgageloans.com

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