Special Financing for Special People!

There are lots of people who don't fit into the typical mortgage lending model. The typical mortgage is a 30-year fixed rate loan, with a minimum of 20% downpayment and the buyer pays closing costs. That said, there are many other programs available for people who are special. They include:

1. Low-doc / No-doc loan: This loan is designed for people with excellent credit who are making a sizeable downpayment. The lender in this case needs very little documentation ("docs") to justify making the loan. It usually can be approved in hours or minutes.

2. VA $0 down: This loan is designed for military veterans to help them get into homes. There is no down payment, closing costs can be included in the sales price of the house, and the guidelines for debt-to-income ratios are more forgiving.

3. $0 down conventional, Neimeyah, etc.: There are several different programs with several different names which offer loans with $0 down payment. These are primarily for low-income people and are federally or privately underwritten. Often the downpayment is made by a 2nd mortgage or 3rd party and must be repaid at a higher interest rate.

In the Neimeyah program and other similar programs, the downpayment is actually made by the home seller, after the price of the home is raised 4% above the list price. Then the seller pays 4% into a fund, and 3% of that is paid back as the down payment for the buyer. Interest rates are often comparable to conventional loan programs, but can be higher.

These programs should be considered and evaluated carefully before committing to them.

100% Financing for Teachers and Doctors: This loan program is offered by a very limited number of lenders, and is designed for specific professions. There is no down payment, and interest rates are competitive.

FHA 3% Down: This is a typical FHA loan program. It is designed for middle-income families who need a low down payment. The debt-to-income ratios are more forgiving, as well.

South Carolina State Housing Program: Designed for lower-income people and first-time homebuyers, this program requires 3% downpayment, and generally has a lower interest rate than conventional mortgages. It is underwritten and funded by the state to promote home ownership. This program has income limits and housing cost limits. Further, it is not always available.

Non-conforming Loans: These are loans for those people who have significant credit issues. The minimum downpayment is 10% or more, and the interest rate is generally 1% to 5% higher than the "going" rate. However, the loan can be made to people who otherwise would not qualify for a mortgage loan.

Other Loans: There are more than 88 different loan programs on the market today. There is a loan for nearly every person who wishes to purchase a home. If you have challenges that are not addressed here, send us a note and tell us what you need. We work with many mortgage lenders and probably can find a lender to assist you. Simply email Tom and tell him your story.