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Shelby Bateson's Blog

By Shelby Bateson | Broker in Portland, OR

Are job security worries keeping you from buying a house? Here's good news!

don't let a rainy day get in the way of your plans (flickr.com)We have just heard from one lender, that they are offering a new loan program called MAP. This program is designed to alleviate your fears about losing your job after you buy a house. Here are the details:

This program is for a housing purchase utilizing FHA and USDA rural housing loan programs only.

MAP is a Mortgage Assurance Program that will make up to 6 monthly payments for you, if you lose your job within the first 24 months after your loan closes.

DETAILS
Coverage Period
Twenty Four (24) months from the closing date of the mortgage.
Maximum Benefit
The lesser of the actual mortgage payment (PITI) or $1,800 per month.
Benefit Period
Up to a maximum of six (6) payments during the twenty four (24) month coverage term.
Vesting Period
Sixty (60) days from mortgage closing date (if purchaser becomes unemployed during this Vesting Period, there is no coverage for this occurrence of unemployment).
Waiting Period
Thirty (30) days from commencement of unemployment.
Eligibility
a) 18 to 66 years of age
b) Employed full time (minimum 30 hours/week) at time of mortgage closing
c) Cannot be self-employed
d) Must reside in US
Contribution Clause
When joint mortgagors are involved, benefit amount will be based on the percentage the unemployed person’s income is to total qualifying income at the time of mortgage closing.
Conditions
a) Unemployment must commence during coverage period
b) Coverage is limited to payments due 30 days after unemployment begins
c) Claimant must qualify for state unemployment benefits
d) Claims payments cease immediately upon re-employment
e) In the event of subsequent unemployment, a new 30 day Waiting Period applies
Exclusions
a) Voluntary unemployment
b) Disability or medical (mental or physical)
c) Reasons listed for denial of unemployment benefits
d) Borrowers that are self-employed or are aware of a pending lay-off
e) Strike/Lockout

The program is underwritten by an AM Best Rated Carrier. Seller concessions can be applied towards payment of this program.

Mortgage rates are fantastic today!  We are seeing several lenders with best rates on 30 year fixed rate mortgages at and even below 5%.  There are some lenders offering 5/1 ARM loans under 4% right now, and FHA financing is about as good as we have seen it all year.

The MAP program is being offered by a lender in the Pacific Northwest, but will do loans for other parts of the country on a case by case basis.  Other conditions can apply to acceptance into the program, such as counseling, education, and of course, eligibility.

Please feel free to contact me for more information.

Shelby

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