Affordable Housing Programs

Affordable housing programs increase home ownership possibilities by reducing the necessary down payment and costs. They are very specific and usually have some criteria and restrictions that must be met in order to qualify for these cost savings programs. Check out some of the affordable housing programs that Republic Mortgage offers:

First-Time Home Buyer

Republic Mortgage Home Loans has a wide variety of mortgage loans created by national organization such as Fannie Mae or Freddie Mac, as well as State-Wide bond programs providing funding for households that meet certain income and/or residential qualifications. These loans offer the benefit of a low down payment and a low interest rate. If you have good credit, but have difficulty with the requirement of standard mortgages, ask us about special first-time home buyer financing and education programs.

Bond Programs

These cities, county and state programs provide below-marketing financing to first-time home buyers who meet certain income and purchase price restrictions. Check with your Mortgage Professional to see if bond programs are available in your city.

Mortgage Credit Certificate (MCC)

These federal programs provide a tax credit to first-time home buyers who meet certain income and purchase price restrictions. The credit is based on a portion of the interest that is on the mortgage.

Rural Development

This loan program provides rural residents that meet certain requirements with better access to affordable housing. It is available in all states.

USDA Rural Housing Loan Program Highlights

· Loans may be for up to 102% of the appraised value or sales price (whichever is lower). A one time 2% guarantee fee can be included in the loan which is how the loan can go up to 102%. This feature allows buyers to finance this expense into the loan amount versus paying it out of pocket.

· No PMI (Private Mortgage Insurance).

· Secured, fixed-rate 30 year mortgages.

· Sellers can assist with paying the buyer’s closing costs.

· Little cash reserves needed for qualified borrowers.

Partial List of Eligibility Guidelines for USDA Rural Housing Mortgages:

· Homebuyers must be United States’ citizens, qualified aliens, or legally admitted to the U.S. for permanent residence.

· Adjusted annual household income cannot exceed the moderate income limits for the area. A family’s size and child care considerations may increase chances for qualification if deductions are applicable.

· Primary residences only.

· Home must be located in rural areas. This may include open country, and places with populations under 25,000 residents. An AAXA Loan Advisor will be able to assist you in researching the eligibility requirements in your area.

USDA Home Loan Program offer more credit flexibility in this concerning housing and lending market than traditional lenders do. It also provides low fixed monthly mortgage payments to help low-moderate income households.

For those that have a desire to live right outside city limits you should check this program out. You can get 100% financing and no down payment within eligible property areas. You will be surprised how many semi-rural properties fall within the programs eligibility.

A large percentage of our country’s greatest obstacle to home ownership is the lack in funds for down payment. USDA provides a solution not many know about. It overcomes down payment issues for an individual or family by loaning up to 100% of the appraised value of the property. This eliminates the down payment requirement.

The USDA Guaranteed Home Loan program helps low-to-moderate income individuals and families purchase homes. The approval process is fairly easy and fast, and the funds for the programs are basically unlimited. Best of all, this loan requires no monthly mortgage insurance, only a 2% up front fee and that can be financed in the loan.

The program offers a 30 years fixed rate mortgage and no prepayment penalty. Under the Guaranteed Loan program, it guarantees loans made by private sector lenders. If the borrower defaults the USDA guarantee pays the lender. Borrowers work with the lender and make their monthly mortgage payments to the lender, not the USDA. Borrowers must have a two-year primary employment history and the dependable income must not exceed the moderate-i9ncome limit guidelines for the eligible property area.

This program offers more lenient qualifying guidelines than traditional mortgages. No minimum credit scores or previous housing history is required. Non-traditional credit is acceptable if not credit is available.

The loans can be used on new construction, existing homes, and homes in need of improvements. The rates are very low and repairs to a home may be financed 100%. The repair work on the home must be done by a licensed contractor.

There is also help for funds to close. All closings costs and prepaids can be financed by the seller, and 100% gifting is available to borrowers. There are no minimum cash contributions from the borrower.

If you have not owned a home in the past three years you can use the USDA home loan and the stimulus bill to get into a home with no out of pocket money and take up to $8000 off your tax liability.

What does this mean to renters? Based on today’s USDA housing loan rates and average rental costs, people can buy a $175,000 home for basically the same costs they pay in rent. For a personal rent versus own analysis contact a local mortgage consultant. If you have a property you have selected you can verify the USDA program eligibility using the following link or just click to gain further knowledge.

· USDA Rural Housing Development Home Loan Program - This is a special program designed to help you purchase a new or existing home in rural communities. For home buyers who fall within the income guidelines, there is no better mortgage program than the USDA Rural Development Loan Program.

· More Flexible Qualifying than Traditional Mortgages –The USDA Rural Loan Program has wider latitude than traditional lenders in the current cautious lending climate.

· No Private Mortgage Insurance Required for USDA Home Loans – Because the government guarantees the loan, you do not need to pay the costs of PMI.

· Financing up to 102% of the price of the home – The USDA mortgage program has worked well for home buyers to help qualified buyers buy a home with no money down.

· Seller Can Pay Up to 6% of Closing Costs for Home Buyer – Financing your home using the USDA program allows your real estate agent to negotiate for seller paid closing costs.