Finally we have some relief for those potential home buyers out there with good credit.
Just got this program today -
I have a lender with whom we can now do 95/5 combo loans for 100% financing. Buyer needs to have a 620 credit score.
It is for a select type of home buyer, and could be very useful for someone needing help who does not want to put money down on their home purchase.
Here are the basic requirements...
Must have "approve eligible" through Fannie's AU system, and have no prior bankruptcy, tax liens, judgments, short sales, repossession, garnishments, etc.
While this may eliminate a lot of folks, remember - the lender is looking for those who can demonstrate a strong probability of on time payment performance. They basically need a clean credit history. Max DTI is 45%
Reserve Requirement: only one month PITI from borrower's funds
3% Max seller concessions/contributions
It is for the Purchase only of a primary 1-2 unit residence, townhouses are allowed, but no condos. ( Borrower can not own any other properties at time of closing).
This is another great tool we have at our disposal to help everyone close more deals.
We can lend in Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee.
Feel free to contact me for more details.
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