Best of Luck, Stephen
Check your local city or county for possible NSP FTHB programs that may be available....and USDA may be an option.
The 3.5% you speak of is the proposal to increase the upfront fee guarantee fee (that is financed into the loan, essentially a mortgage insurance policy) by congress. An increase of 1.5% from the upfront fee that exists now, keep in mine there is no monthly MI with USDA. Keep in mine FHA charges 2.25% upfront fee.
Financing 102% financing based on appraised value (2% fee to do the loan financed into loan)
Term 30-year fixed
Refinance Option Yes – Rate reduction only - no cash back - Reduced Guarantee Fee of .5%
Only existing GRH and Section 502 Direct loans are eligible for refinance
Mortgage insurance No monthly mortgage insurance. One-time guarantee fee of 2.00%
Payment reserves No payment reserve requirements
Downpayment No downpayment
First-time homebuyer No First-time homebuyer requirement
Seller concessions No maximum. If greater than 6%, comment from the appraiser required
Gifts 100% gifting permitted. Donor must be disinterested third party.
As to buying a foreclosed home with such a loan type, it depends on the house condition mostly and will it pass a VA or VHDA (a form of FHA) inspection. In Chesapeake, there were 436 foreclosures purchased this past year and closed, and a whopping 236 (57%) of those were financed with VA, VHDA, or FHA loans.
Wainwright Real Estate
Nelene Gibbs, Realtor, e-Pro
Real Estate Investment Advisors
There are other homes out there that you could use those types of loans. But, the market is picking up, so I would not delay your search.
Hope this helps!
It all depends on your credit and means of purchase. If using Conventional or FHA financing, a down payments is always required. With a VA Loan, you have a good chance of getting into the house with no
Now, you could only be speaking of closing costs in your "no money down" question. If this is the case,
you have a good chance that the foreclosing bank would provide the closing costs for the home with a reasonable offer. Call me or email me so that we can discuss further your plans.
My number is (757) 580-6546. I know my email will be attached!
Always the Smart Move,
The other program is a USDA Rural Home Loan which has income limits and property location requirements in order to qualify for such. The property has to be located in a federally designated area deemed to be rural. I've attached a link for eligibility purposes for this loan below. Good luck Charlie with your search and let me know if you need any help.