Almost by accident, I learned about the ACORN loan program earlier this year, It sounded too good to be true for our San Diego real estate market. Judy Miller with Bank of America Mortgage explained that a borrower could receive below-market rates and amazing terms if the following criteria (regionally adjusted) were met:
!. Adjusted gross income less that $90,000 per year
2. Home priced under $500,000
3. One home only. Good for not only first time homebuyers, but any homebuyer who owns only one property.
4. Also good for refinancing (out of riskier mortgages, perhaps?)
The benefits?
1. Below-market rate with no points.
2. No PMI (private mortgage insurance)
3. Very liberal debt-to-income ratios.
4. Very low down payment required (0-5%)
5. Underwriting will credit some "cash" income and alternative sources of credit.
Immediately after hearing about this program, a qualified client (48k per year income) came in and we located a lovely La Costa townhome ($435k) that was ideal for her roommate situation. She had sold her home in Northern California and had a reasonable down payment (not necessarily required for the ACORN loan program). She took the one-day class on home ownership required by ACORN and afterwards met with her counselor to obtain a loan certificate. She brought that to Bank of America, who processed and funded the loan. It was amazingly simple and we were able to close within 45 days.
The loan terms? At a slightly-below-market rate (no prepayment penalty or points): Ten years interest only which will automatically convert to a fully amortized 30 year loan at the same rate.
For additional information, go to: http://acornhousing.org
For a nationwide lender who is familiar with and can process and fund these loans, call Judy Miller at Bank of America Mortgage: 888-427-2936 or contact the above link.
I am very impressed with the program, and have other clients enrolling in the classes. It's a terrific prequalification tool for Realtors!
--Roberta Murphy
http://www.SanDiegoPreviews.com
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