Zero Down Loans
How can they help you solve your closing cost needs?
Zero down payment required to purchase a home. What this means for you the buyer is that simple.
Closing cost assistance can be used to pay the closing costs so that you do not need to negotiate with the seller to pay your buyer closing costs. This is an important tool as seller do not want the purchase priced pushed higher than your actual offer as it could leave to appraisal problems.
There are many programs that do not require the buyer to put down money but in a competitive market, it may be worth putting extra money down as good faith or Earnest Money that you can get back on the day of closing.
USDA or Rural Development Zero Down Loan Program
One of the three divisions of Rural Development, the Housing and Community Facilities Program, invests in providing safe, clean and modest living for those who live outside our urban centers. This program is designed for people that are buying in rural area’s with populations normally under 35,000. A good rule of thumb is to assume that you would be buying in an city that is not touching another city’s borders.
Veteran or VA Loans
A VA loan does not require a down payment to buy a home. It is a great program to use if you have been in the military and accumulated enough points to qualify for VA loan benefits. It also has no mortgage insurance and very competitive interest rates which make it a good product for purchasing a first home. It also has lower credit requirements so can be used by a borrower with lower credit scores.
Loan Programs
CBC offers Zero down Conventional and FHA loans with no Income Limits as well as reduced interest loans with income limits.
Unison Home Ownership Investors offer matching down payment loans for purchase prices up to Ten Million Dollars.
FIRST MORTGAGE PROGRAMS
Conventional Loans
CBC Conventional 97 Loan Program
The CBC Conventional 97 program is a conventional first mortgage with no max income limit for qualifying. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs. You can own a home and use this program to buy a new primary residence.
CBC Conventional Loan Program
The CBC Conventional program is a conventional first mortgage with reduced interest rates. This loan has income limits that are 100% of the AMI. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs.
Government Insured Loans
CBC DPA Edge Loan Program
The CBC DPA Edge program is a FHA first mortgage with no max income limit for qualifying. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs. Max Purchase price is equal to FHA Loan Limit for the county.
CBC Rate Advantage Loan Program
The CBC Rate Advantage program is a FHA first mortgage with 115% AMI income limit for qualifying. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs. Max Purchase price is equal to FHA Loan Limit for the county.
DOWN PAYMENT ASSISTANCE PROGRAMS
The money you put “down” or the down payment on your home loan can be one of the largest hurdles for many first-time home buyers. That’s why CBC offers several options for down payment and closing cost assistance. This type of assistance is often called a second or subordinate loan. CBC’s subordinate loans can be “soft seconds” or “repayment seconds” depending on what is best for the buyers situation.
CBC Soft Second
The CBC soft second can be forgiven after 36 on time payments on your first mortgage. If you miss a payment the 36 on time payments start over from zero.
CBC Repayment Second
The CBC repayment second can be one of the following. 10 year at zero interest, 30 year at 5% interest, 10 year at 2% higher rate than the CBC first mortgage or 10 year at 8%. The type of second you can use depends on which 30 year fixed first mortgage product you are using.
CBC DPA Edge Loan Program
The CBC DPA Edge program is a FHA first mortgage with no max income limit for qualifying. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs. Max Purchase price is equal to FHA Loan Limit for the county.
MORTGAGE CREDIT CERTIFICATE TAX CREDIT PROGRAM
Mortgage Credit Certificate Tax Credit Program (MCC)
A federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment. This MCC Tax Credit program may enable first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar for dollar tax credit on their U.S. individual income tax returns.
Some of the Key benefits of Within Reach
- Down Payment assistance amounts 3.00% or 4.50% of the 1st mortgage total loan amount.
- DPA Grant – no repayment required!
- 620 or higher credit score!
- Conventional, FHA, USDA, VA programs
- Seller Credit of 6% is allowed.
- Gift funds are allowed!
- Grant can be used for down payment and/or closing costs.
- Borrower(s) not required to be First Time Homebuyers.
- Income Limit is based on qualifying income used for transaction, not household income.