BB& T announced changes to Community Homeownership Incentive Program (CHIP) – The latest mortgage news updates this program that now requires a 3% down payment. Private mortgage insurance is waived. First-time home buyers and previous homeowners are eligible; however, income cannot exceed 80% of county median income.
Wells Fargo Programs – Community Development Mortgage Program (CDMP) is 2% down payment (including gifts and funds from approved sources). No mortgage insurance required. Income must be below 80% of area median and borrower does not have to be a first-time buyer. Seller contributions up to 3%.
Neighborhood Community Development Mortgage Program (NCDMP) require a 5% down payment (includes gifts and funds from approved sources). No mortgage insurance required. Borrower does not have to be a first-time buyer, but must purchase in a low-to-moderate income census tract. Reserves required equivalent to two – month PITI.
Credit Union Financing for First-Time Buyers – At the end of 2012, mortgage loans as a portion of the total loan portfolio held by credit unions, reached an all-time high of 29.1%. The Economic and Statistics Department of the Credit Union National Association (CUNA reported that the first mortgage delinquency dropped from 2.22% in December 2011 to 1.44% in December 2012. With rock bottom mortgage rates, fixed-rate first mortgages also turned in a solid 7.4% growth, their fastest rate since 2009. Total growth in credit union first mortgage was 5.9%, compared to 4.2% in 2011. Over 50% of all credit unions offer first mortgages. In Maryland, credit unions control $4.5 billion in first mortgages, about 23% of their total assets, comparable to the national 24% proportion.
Source: June/July 2013 issue of Maryland Realtor (www.mdrealtor.org)
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