 |
|
99.5% Total Financing for California Homebuyers |
Frequently Asked QuestionsClick on the questions to show and hide the answers. Q: I heard that your income has to be within a certain range to qualify for this loan. Can you tell me more abou this?
This down payment assistance program uses "qualifying income" to see if you qualify for the program, not the "household income". We look at the combined income of the borrowers that are going to be on title. Each county in California has a different "qualifying income" range in order to qualify for the loan. Click here to see the county income limits. Q: Does this program work with low or no credit scores but have good reserves?
Yes. However, keep in mind that this program works better for those who have NO down payment or closing costs. If you have reserves for down payment, you may not want to use this program but use a Regular FHA loan to avoid the 2nd and get a lower interest rate. If you aren't sure about your credit, fill out the form on this site to see if you qualify, or call one of our representatives. You may qualify, even if you don't think that you would. We also have a trusted partner that handles credit restoration. This process may be of benefit also. Feel free to inquire about these services also. Q: What is the maximum contribution the seller can make?
Current FHA guidelines say 6%.
Q: Are in-laws considered to be acceptable family relations for gift funds?
If there is a clearly defined and documented interest in the borrower, and it is accepted by underwriting, then yes; in-law is an acceptable family member to donate gift funds.
Q: What are the specific guidelines to Bankruptcy’s and Foreclosures, open judgments and
collections?
Bankruptcy’s is 2 years and Foreclosures is 3 years. Judgments can be open as long as there’s an
established payment history already in place with a paid-as-agreed history of a minimum 12
months; otherwise must be paid off prior to new loan. Collections may remain in place if cumulative total
is no more than $1,000 – exceptions allowed.
Q: Is the pricing higher than a regular FHA loan?
Technically YES. Remember, this is a 1st with a 2nd up to 99.50% Loan to Value representing a greater
risk than a borrower putting 3.5% down. The loan has to be priced according to risk.
Q: Is there a Prepayment Penalty on the 3% 2nd?
NO. There is no pre-payment penalty on both the 1st and 2nd.
Q: With this program, can you still take advantage of the First Time Homebuyer Tax Credit?
Yes, but the tax credit has expired now.
Q: If a person has collections, can they still qualify for this program?
We follow standard FHA guidelines. There cannot be any derogatory
credit in the last 12 months; that includes no collections, judgments, late payments of any kind, etc. The
borrower cannot show declining credit in the last 12 months. If derogatory credit happened more than 12
months ago, a good letter of explanation must be provided together with documentation and it must make sense.
Q: Can you have more than one FHA loan if you own another FHA financed property?
FHA does not allow borrowers to own more than 1 FHA mortgage at a time. However, there are
exceptions allowed such as relocation due to job or family outgrew current residence, etc.
Q: I heard that you do a Streamline Refinance in 6 months to combine into one loan. Is this correct?
You can do a FHA Streamline on this program after 6 months of consistant payments and get a lower interest rate and monthly payment.
Q: Is the 43% max Debt to Income ratio exclusive of the payment on the 2nd?
The 43% max DTI must include the payment on the ACCESS 2nd.
Q: Are manufactured homes eligible for this loan program?
Yes, but it must meet FHA guidelines. For a more detailed answer, it is best to speak with a representative.
Q: Is this downpayment assistance program only available in the state of California? Is it limited to certain counties in California?
Yes. This program is available throughout the entire state of california!
Q: Is the total loan amount (1st and 2nd) counted towards the FHA loan limits OR only the loan amount
on the 1st?
Only the loan amount on the 1st.
Q: Does this program allow a Conventional 1st?
No. This program only available with an FHA 1st. Q: I thought the new policy from FHA requires buyers to have a minimum of 3% contribution? Does
this mean when using this downpayment assistance loan of 3%, the borrower doesn’t have to come in with 3% of
their own funds to purchase a home?
That is correct. This loan program has already been negotiated with FHA and have met their requirements to offer the 3%
downpayment assistance 2nd to meet the borrower’s minimum contribution. This is what makes this program very unique
and it’s available exclusively through only one lender!
Q: If a married couple makes too much to qualify for the county income limits for the county we are looking in, can we use the income for just one spouse?
Yes you can do this with only one spouse as long as they qualify for the loan on their own. Remember that you still need to count the non-borrowing spouse's debts in the debt-to-income ratio.
Q: If I had a VA loan more than 3 years ago and I foreclosed on it, can I still qualify for this loan program?
Yes. FHA only requires a 3 year seasoning on foreclosures, regardless of the previous program.
|
|
*Some restrictions may apply. Contact MoneyIdeas Loans for complete loan details. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Rates, programs, terms and conditions are subject to change without notice. By submitting this information request you expressly consent that MoneyIdeas Loans may contact you by telephone, email, or direct mail even if you have previously registered on a Do Not Call registry or have previously requested that MoneyIdeas Loans not contact you for solicitation purposes.
California Corp. Real Broker License #01520354
(Click to view MoneyIdeas Company Information on California Department of Real Estate web site)
NMLS # 151451
Copyright © 2010, MoneyIdeas Loans, All Rights Reserved
