Darleen McCullen, REALTOR®, Broker
Keller Williams Realty
No doubt, you've been watching the news or reading it in the papers or on the Net. And it seems as if it's all doom and gloom, doesn't it? Even in the Raleigh area, home of one of the strongest real estate markets in the country, Buyers and Sellers are concerned about the housing market - and where Buyers are going to obtain the money to purchase the increased inventory of homes on the market.
Although FHA Seller down payment assistance programs no longer exist, there are several programs that allow buyers to close bringing little to no money to the table. Yes...100 percent financing!
One program my clients have taken advantage of is CHIP, which is BB&T's Community Homeownership Incentive Program. NOTE: The Website indicates that it's a 97% financing program (with 3% down payment being brought to closing by the Buyer. However, this is OLD information, according to the loan officer I recently worked with a couple of weeks ago to close a loan for my Buyer, who obtained a 100% loan through this program).
North Carolina Housing Finance Agency
Another popular program, the FirstHome Mortgage, is offered through the North Carolina Housing Finance Agency (NCHFA). To help with down payment costs, NCHFA offers an interest-free, deferred second mortgage of up to $7,000 to offset some down payment and closing costs for buyers who fall below 80 percent of area's median income. The organization provides buyers with interest rates that are below market value. (Today, Oct. 14, 2008, the interest rate is 5.99%)
Also, the NCHFA offers a feature called HomeSaver, which helps borrowers keep their homes if they lose their jobs, through, say, company downsizing, which is through no fault of their own. The Agency will provide up to 4 months of principal and interest payments, and the borrower(s) repay the loan at no interest when the property is refinanced or sold.
USDA Rural Development
The USDA (United States Department of Agriculture) offers 100% home financing in rural areas. I've been pleasantly surprised that often, the properties were not in areas that were traditionally thought of as rural areas.
In Wake County, the estimated loan limit is $160,100, while the Durham County limit is $153,800. View the income levels for 1 to 8 individuals living in a household. To view loan limits for other areas within North Carolina or in other parts of the United States, visit the USDA Rural Development Website.
See if a property is eligible for the USDA 100% financing program by following these steps:
- Visit the USDA Income and Property Eligibility Website.
- On the left under "Property Eligibility Programs", choose the property type. For first-time buyers, this will probably be "Single Family Housing".
- Type in the property address; select a state; and type in a zip.
Do you have loan programs not listed here to share that may help first-time Buyers realize the American dream? Please share!
Disclaimer: I am not a loan officer (nor do I play one on television J ... however, as a REALTOR®, I do my best to be educated on what's available to my clients. If you need additional information other than what is offered here, I will be happy to refer you to my lenders of choice.
REALTOR® on a Mission... NOT Just Seeking a Commission!TM
Disclaimer: Opinions expressed by those who are part of the ActiveRain community, including those providing comments relating to this blog, are their opinions and their alone - and do NOT reflect the opinions of Darleen McCullen and Keller Williams Realty. Darleen McCullen and Keller Williams Realty are not responsible for the accuracy (or lack thereof) or content provided by others.