PROGRAM HAS BEEN UPDATED WITH MORE DOWN PAYMENT ASSISTANCE. CLICK HERE FOR DETAILS!
The North Carolina Housing Finance Agency has just released details on its new conventional loan product, and it’s a good one. With 97% conventional loans going away, there is a new option, and it includes 2% down payment assistance, leaving only a 1% down payment required from the buyer. The program starts at 9:00 am on February 3, 2014. Rates will be available then at this link.
Here are the basics:
- 97% loan to value loan with 2% down payment assistance available, for a minimum of 1% borrower contribution
- 18% Mortgage Insurance coverage required
- Mortgage Insurance can be: Monthly, Split Premium or Single Premium (down payment assistance can be used to pay for part of split premium)
- Maximum combined loan to value (CLTV) is 105%, as the loan can be combined with House Charlotte and City of Raleigh Homeownership programs
- 640 minimum (mid) credit score. 680 if loan to value is over 95%. (Here’s how to get truly free Experian and TransUnion Credit Scores)
- Single family homes, Townhouses and modular homes qualify (No condominiums or manufactured homes)
- $85,000 maximum household income
- Up to 45% Debt to Income ratio allowed as it is QM exempt (Calculate your DTI here)
- 60 day locks are available (starting 2/3/14)
- Down payment assistance is treated as second mortgage and is fully forgiven after 15 years. The balance is deducted 20% per year from years 11-15.
- A Mortgage Credit Certificate (MCC) can be attached for first time home buyers