The ACORN Program - Not Just for Fisrt-Time Home Buyers

ACORN is a National non-profit Housing program with goals to provide free housing counseling directed toward achieving homeownership for low to moderate income homebuyers.  ACORN accomplishes their goal by providing one-on-one mortgage loan counseling, first-time homebuyer classes, and works with lending partnerships to obtain affordable mortgages for their clients.  The mortgages ACORN helps arrange are usually with lower interest rates, lower down payments and lower settlement costs than what banks usually offer.  Each lending partnership has different lending guidelines.  Here is a sample set of ACORN guidelines:

Sample ACORN Guidelines:

• 97% Loan-To-Value (LTV, One Loan) with No Private Mortgage Insurance (PMI).  A Down Payment Assistance program like CHDAP can be used for the 3% down payment.  Note CHDAP is only for 1^st time home buyers in California.
• Declining Market Areas will require an additional 5% off Maximum LTV (92%)
• Maximum Loan Amount for a single family residence is $500,000
• Minimum Credit Score: 620 (1-2 units)  660 (3-4 units)
• Income Limits are 80% Average Medium Income (AMI) regardless if in low/moderate.  Designated High-Income counties have income limits at 112% AMI.
• 45 / 45 for one-unit properties with two months reserves
• 43 / 43 for one-unit properties with less than two months reserves (no reserves required)
• Can only own one property and that must be a primary residence.  To purchase a new property, borrower will be required to show HUD1 at close on new property.
• All Borrowers must take Homebuyer Education
• All Borrowers must meet with ACORN counselor
• Borrower need $500 of own funds to close

Eligible Products:

• 30-Year Conventional Conforming Fixed Rate loans
• 40-Year Conventional Conforming Fixed Rate loans
• Conforming 10/30 Fixed Rate Interest-only product

For specific information on the ACORN Program, please phone or Email me. 

Also Read:   Mortgage Programs for First Time Home Buyers
Also Read:   FHA Loans: The First-Time Home Buyers Loan of Choice!
Also Read:   CalHFA: A California First TIME Home Buyer's Prgram With Up to 100% Financing

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages or at Bank of America Mortgage .  Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator. 

Alan 'AJ' Nisen
Mortgage Loan Officer
Email: aj.nisen@bankofamerica.com
http://mortgage.bankofamerica.com/ajnisen 
http://www.activerain.com/ajn