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H.O.M.E. 1 Percent Down Payment for FHA Loans

1% Down Payment for FHA Loans - Introducing H.O.M.E. - Home Ownership Made Easy (edit/delete)

The H.O.M.E.^TM Gift Program provides up to 2½% as a gift to be used for a Down Payment. This program is ideal for low to moderate income individuals and families looking to obtain quality affordable housing with only 1% down.

And the better news is - the 1% down payment can be a gift from a family member!

The H.O.M.E.^TM Gift Program
is offered exclusively through
The Lending Company, a direct endorsed U.S. Housing and Urban Development lender.

Contact: Marlo Newman
Mortgage Banker - Program Manager
Office: 480-621-4257
Cell: 480-326-9858
Fax: 480-596-6512
MNewman@TheLendingCo.com

* Plus, the Down Payment can
be a Gift from a Family Member!

Program provides up to a 2½% gift to homebuyers utilizing an FHA 1st mortgage.
Down payment requirements as low as 1%.
Seller can contribute up to 6% for closing costs and pre-paids.
Expanded Income Limits based on county.
Competitive interest rates.
Flexible loan approval guidelines.
Not just for first time home buyers.

Virtually any H.U.D. Approved
Home* Qualifies... · 1 to 4 Family Homes · Condominiums
· Redevelopment and Reconstruction
· Manufactured Homes *Must be Owner Occupied.
The Lending Company is a Direct Endorsed H.U.D. Lender.
The H.O.M.E.^TM Gift Program is available statewide in AZ
to qualified homebuyers. Ask your representative for details.

6910 E. Chauncey Lane,
Phoenix, AZ 85054

Ste. 220

Posted by Marlo Newman on 06/05/2009 10:25 PM

Comments (13)

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one percent down payment program

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13 Comments on H.O.M.E. 1 Percent Down Payment for FHA Loans

JUN

Marlo,

If only qualifying were easy, this sounds like a great program, and so many people could benefit. hanks for the information

JUN

Jon the good news is it's a FHA loan.

There are some overlays:

620 Fico
No Thin Credit - meaning 3 tradelines open for at least 1 year.
DTI from 41-45%

Rate is a little higher, then if the borrower comes in with the full 3-1/2 percent down, but the rate can be purchased down with seller concessions. It works out to be between $40.00-$90 per month more if there are not any seller concessions.

With prices and rates rising its still a better deal than waiting to buy a few months from now.

The rest is standard FHA.

The great news is in Arizona there was 1700 transactions done per month with seller funded DPA's. The elimination of these programs in October last year probably pushed 40% of buyers out of the market. With this program at least 25% can now come back in.

Please fell free to ask any other questions :)

Thanks,

Marlo

Mario: You mentioned that the rate is "a little higher." How much is a little ? And, where does the down payment come from ? If the rate is above the par rate... is that where the credit for the down payment comes from ?

Karen, the down payment comes from a HUD approved non profit organization (not seller funded) . The rate is usually .5-1% higher than par because the investor purchasing these is aware that when people don't buy a home with full skin in the game it's a higher risk, therfore a slightly higher price.

The good news is that amount comes to only $40.00-$90.00 per month for 90% of these deals. If there are seller concessions of 3% or 6% that rate comes back down to almost par.

Hopefully we will find a non profit that wants to purchase the tax credits in the near future so the buyers can buy the rate down if the seller does not help out with closing costs or points.

All in all it's still way better than the old seller funded DPA's where the seller was paying 9-10%

hope that helps

Marlo

Very interesting plan. It does get riskier as people have less involved there does seem to be a lack of motivation to keep up both the payments and the properties. Am curious to see how this shakes out.

JUN

Marlo, Do you know how we can find state specific on the HOME gift program, if any? Thanks in advance.

Nishika, Sorry to say it's Arizona only at this time. We are hopeful to hear back some news this week that may allow us to expand to other states, but at the moment AZ only. :(

JUL

Hi Marlo,

What is the name of the non profit company approved with HUD? How long have they been in business? Are they a solid company? What do they charge, fee? This will help me will explaining this program to my buyers?

Thanks,

JUL

Can you email me the requirements and the forms buyer & seller must complete, or do I have to attend the seminar to obtain them?

Pat, The name of the Non Profit is Family Housing Resources, they have been in business almost 15 years, they are very solid, and there is no fee.

Tom, there are no forms for the seller (its not seller funded) there is a gift letter that the buyer receives that happens at the loan application step.

Thanks,

Marlo