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0.5% down to purchase a home …Fact or Fiction?

February 1, 2012

.5% down to purchase a home….Fact or Fiction?

2012 is already under way, andfor those of us lucky enough to find ourselves in the field of real estate,this represents yet another opportunity to reach our career goals. Unbeknownstto many, it is possible to purchase a home for .5% down. As withany other loan program, especially a program as incredible as this one, thereare some restrictions, meaning not everyone will qualify. Having the necessaryinformation at your fingertips can make the difference between a “dead” fileand one with newfound potential.
First things first, let us startoff by addressing this loan by its actual name, which is the CHF Access 2nd, provided tothe public by one of our strongest banking partners, First Mortgage Corporation(FMC). FMC has pulled out all of the stops with this particular program,essentially making it possible for just about anyone to realize their dream ofhome ownership. Although FMC has several notable loan programs worth garneringa second look, one of its best offerings is the CHF Access 2nd.
The CHF Access 2nd workshand-in-hand with its FHA loan program, which was originally designed to helplow-to-moderate income families in the State of California realize homeownership. The program has simple mechanics; the borrower first gets qualifiedfor an FHA loan, which traditionally covers 96.5% of the purchase price, andthe CHF Access 2ndcoversup to 3% of the remaining purchase price. This leaves a balance of .5%, whichthe borrower needs to come in with at the close of escrow, and those funds canbe gifted, if needed.
The particulars of the CHF Access2nd are as follows:the loan is amortized over 15 years, at a fixed rate of 8.25%. There is noprepayment penalty, so it can be paid off at any time, and, per FHA guidelines,up to 6% in seller contributions are allowed. Another interesting point toconsider about the CHF Access 2nd is that aside from down payment assistance, thesefunds can also be used to help pay for closing costs, upfront MI or priceadjustments. The guidelines for the income and additional qualifyingrequirements are available for review on the FMC website, or interested partiescan email me directly for more information or to help answer other questions orconcerns. Take advantage of this spectacular program today, and increase yourworking pipeline.
There has never been a bettertime to go back and review some of your stalled files to see if this programcan’t breathe some new life into them and turn that deal into your nextpaycheck.
Written By:
Melba Baquero
Broker Associate / Mortgage Loan Originator With Platinum Mortgage Company
E-mail: Melba@
DRE 01354095/NMLS 255430

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