We offer 2 unique industry-setting privately created and administered multi-state down payment assistance and closing cost programs from a charitable organization. These new “Starter Loan” Programs do not utilize premium pricing on the first mortgage to fund the down payment and closing cost assistance loan. This non-premium pricing model results in lower borrowing costs for the consumer while still achieving financing for the purchase of their home.
The Starter Loan Programs are targeted to homebuyers earning less than or equal to 140% of the Area Median Income (“AMI”) as referenced in Fannie Mae’s AMI limits, and intend to occupy that home as their primary residence. All borrowers will be required to complete a U.S. Department of Housing and Urban Development (“HUD”) approved home buyer education course.
The first available Program is an Interest Only second mortgage, offered in conjunction with the first mortgage. The Borrower pays only the interest on the second mortgage for a term of 30 years thus making for a smaller monthly payment. When the fixed term is over, the principal amount is due.
The second available Program is a “Shared Appreciation” second mortgage in which the Borrower makes NO loan payments during the life of the loan. The loan is only repaid when the property is sold or refinanced and the lender receives a portion of the increase in the home’s value.
Both Program options offer the capability for No Money Down and No Closing Costs.
