Montgomery County mortgage announced today by the Community Development Administration. The funds are on a first come - first serve basis. And they will go lightning fast!As a result of the very successful Phase I and II of the Montgomery Home Ownership Program. The Community Development Administration in collaboration with Montgomery County is pleased to announce Phase III is open to accept reservations. The Montgomery Home Ownership Program is designed to assist eligible home buyers who purchase a home in Montgomery County. Combining a Maryland Mortgage Program (MMP) first mortgage loan with a generous down payment assistance (DPA) second loan.Highlights of the program are as follows:* Montgomery Home Ownership Program second lien will be a zero percent deferred down payment loan* Maximum down payment loan will be 40% of total household income up to a maximum of $25,000.00* Down payment funds may be used for down payment and/or closing costs* … [Read more...]
Montgomery County Home Ownership
Montgomery County Home Ownership Program II was announced by the State of Maryland. Funds will go fast - Buyers should ASAP!Here are the details of the Montgomery County Home ownership Program II:Down payment assistance will be limited to 40% of the total household income with a maximum total of $25,000 per home. These funds can be used toward down payment and/or closing costs. Example: A buyer has total household income of $85,000 so they would be eligible to receive $25,000 in assistance. Down payment assistance will be in the form of a loan at zero percent and will appear as a 2nd lien on title. Funds will have to be repaid back if the buyer ever sells their home. Available to all first time home buyers in Montgomery County. First time home buyers are defined as someone who has not owned a home in the last 3 years or more. First time home buyers requirements will be waived if property is in a targeted area - or if buyer is an honorably … [Read more...]
The Basics of Mortgage Financing
The basics of mortgage financing for each type of mortgage financing as it relates to credit, income and assets follows. We have included helpful tips that will help home buyers in situations that are unique and do not follow cookie cutter conventional financing.Credit score: Currently, the lowest credit score is 620 if no mortgage insurance is needed. And, 640 if mortgage insurance is required. Loan officers cannot manually underwrite conventional loans. They must have an Approve/Eligible in the automated underwriting system.Unlike Federal Housing Authority (FHA) loan - Conventional loans carry risk based pricing adjustments so the lower the credit score the higher the rate and mortgage insurance rate. Typically, a buyer with low credit scores will be much better served using FHA financing because the rate and Mortgage Insurance (MI) will cost less for them.Income:The maximum debt to income ratio is typically 45%. However, a Loan Prospector with good … [Read more...]
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