We were just notified yesterday that we can now go to 97% loan to value on condos! That is wonderful news that should help buyers and sellers! The biggest stumbling block to condo’s had been mortgage insurance and one of the companies is now willing to issue private mortgage insurance to those buying condo’s. So many condo’s are not FHA approved and if you did not have 10% down, most buyers had to go to an FHA loan and attempt to get a spot approval to buy a condo.
We also were approved on a new conventional mortgage program that will allow a first mortgage of up to 97% LTV and a community second up to 103% CLTV. What that means is the you can purchase a home and if you have good credit, you can buy ZERO down again! The program does not require that you are a first time homebuyer. You need a credit score of at least 680 for the 3% down program and you need at least one month of reserves (equal to one month of house payment). Mortgage insurance is required on the program and there are income limits of 140% of the HUD median income. This is not a bond program so there is not a recapture tax when the house is sold later.
For any questions on these programs, please give me a call. Don’t forget that if you are a first time homebuyer, there are programs available to you. Plus there is the $7500 tax credit on your income taxes if you qualify.
Leslie Vanderwerf, Advisor’s Mortgage – Email – 651-683-4161
