Mortgage financing available


Many people I speak with are unaware of the financing programs available to purchase a home. These loans are not only for first time home buyers. Home mortgage programs are designed to offer buyers who qualify for mortgages, but may not have the cash required to purchase a home. Some of the features are little or no down payments, closing costs waived,  FICO scores in the low 600’s, and free grant money.

Here is a list of the 5 home mortgage programs currently in force (January 2011) to help you buy a home.

1. Fannie Mae Home Path Program – this program is designated for Fannie Mae REO properties and both home owners and investors can take advantage of the loans. Requirements:

  • 3% down for home owners
  • 15% down for investors
  • No appraisals
  • No PMI
  • Seller can contribute up to 9% for LTV (loan-to-value) less than 75%; Up to 6% for all other LTV’s

You can find a list of these properties by going to www.homepath.com. These properties are listed with real estate agents, and your agent will be able to show these to you.

2.  Grant Money for your Mortgage. To get the grant money you must qualify – the requirements are:

  • Varies by region, city and county. In Contra Costa & Alameda County the maximum loan amount is $417,620
  • 620 FICO Score
  • Up to $12,510 available for down payment or closing costs – based on property
  • Owner occupied only

Best of all about this program – you do not have to pay back the money. Please understand – you do not have to pay back the grant money!!!!

3. Bank of America Doctor Loan

Who is eligible?

  • Medical residents
  • Existing or new licensed Medical Doctors (MD)
  • Doctors of Dental Science (DDS)
  • Doctors of Dental Medicine (DMD)
  • Dental Surgeons specializing in oral and maillofacial surgery (DMD)
  • Doctors of Optometry (OD)
  • Doctors of Opthalmology (MD)
  • Doctors of Podiatric Medicine (DPM)
  • Doctors of Osteopathy (DO)

Eesentially:

  • Newly licensed medical residents who are currently employed or in residency
  • Newly licensed medical students who are about to begin their new employment/residency within 60 days of closing

Not Eligible – MDs, DMDs, DDSs, dental surgeons, and other eligible professions who are not actively practicing medicine.

Amount You Can Borrow

  • Loan amounts up to $850,000
  • 95% LTV (5% down required)

Existing medical doctors who are actively practicing

  • Newly licensed medical residents who are currently employed or in residency
  • Newly licensed medical students who are about to begin their new employment/residency within 60 days of closing.

Some restrictions for using future income, such as down payment. FICO score 720 or better.

4.  USDA Rural Development Mortgage Loan – 100% financing available. Rural areas don’t just apply to “farm areas”. There are parts of most cities considered rural for the purpose of this loan program. Check this website to define your area.

  • Zero down payment
  • No mortgage insurance
  • Closing costs payment can come from any source
  • Easy qualification criteria
  • Not limited to first time buyers

5.  Good Neighbors Next Door Program – Mortgage assistance for Teachers, Firemen, Police Officers. This program those qualified applicants to obtain a home at 50% off the purchase prices. These are HUD owned homes. Down payment is $100 if purchased with a FHA loan, more if using other types of financing.  To find homes in your area, check this website http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm

About Linda Urbick Linda

has written 260 articles on this blog.


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