Though loan limits vary from state to state, the basic guidelines for Acorn Loan program qualification remain much the same. In California, for example, maximum qualifying income is $92,000 and mortgage loan cannot exceed $500,000. To see what your state guidelines are, check with either Chase Mortgage or Bank of America Mortgage directly. It is my understanding they are the only two mortgage lenders funding these loans--and that they cannot be brokered.
The California qualifiers:
Applicantâ€™s adjusted gross income less than $92,000 per year
Home loan must be less than $500,000
Applicant can only own one parcel of real estate.
An excellent tool for refinancing (out of riskier mortgages, perhaps?)
The California home can be purchased for more than $500,000, but the mortgage loan amount cannot exceed that amount.
Potential borrower(s) must attend a one day home ownership class, where a certificate of eligibility will be issued after having met with an Acorn counselor.
Below-market rate with no points.
No PMI (private mortgage insurance)
Very liberal debt-to-income ratios.
Very low down payment required (0-5%)
Underwriting will credit some â€œcashâ€ income and alternative sources of credit.
Credit and FICO scores are not as important with the ACORN Loan as they might be with other financing.
No pre-payment penalties.
No loan points
100% financing available.
One program offers 10-year interest-only loan that automatically converts at same rate to fully amortized 30 year loan.
Here's a good resource for you:
In addition, the Mayor's Office of Housing is a good place to start as well. That link is: