0% down financing is getting harder and harder to find these days. The most common approach of creating 0% down financing is through the FHA loophole which allows for a seller to contribute the 3% required down payment via a down payment assistance program such as Nehemiah and Ameridream. However, the Federal Government will eliminate this flexibility with the passage of the latest housing bill. As of October 1, 2008 these loans will no longer be available.
Once that is gone what will be next? I may have found the answer with the ACCESS program we offer in conjunction with National Homebuyer Fund. This program will provide a 2nd mortgage for a homebuyer who meets the qualifications up to 100% of the purchase price (the website states 105% but we can’t get mortgage insurance beyond 100%). Here are a few key points of the program:
*The ACCESS 2nd mortgage cannot exceed 8% of the purchase price & cannot exceed 100% combined loan to value. The structure which creates the lowest monthly payment is a 95% primary mortgage and 5% combination mortgage.
*The ACCESS 2nd mortgage is a 20 yr. mortgage with a fixed interest rate which will be 2.00% higher than the rate on the primary mortgage. It has principal and interest payments.
*The ACCESS 2nd mortgage can be used in combination with a variety of 1st mortgage products including 30 year fixed rates with interest-only payments.
*The ACCESS 2nd mortgage carries no prepayment penalty.
*In order to qualify for this program the applicant cannot have income which exceeds 140% of the median household income (In the Portland area the limit would be $86,800).
Give me a call today if you’d like to see is this program will work for you!