This program is designed to assist homeowners who were facing difficulties in refinancing their mortgages due to declining property values.
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About HARP Loans
Here are some key points for the Government Rehabilitation Loan Program, A.K.A. Home Affordable Refinance Program, Obama Government Refinance Assistance, or Underwater Government Loan Assistance.
Must have refinanced or purchased prior to May 31st, 2009 Little to no upfront costs, no appraisal needed Unlimited Loan to Value Limited documentation needed (as little as 30 days of paystubs) Refinance to rates as low as 3.99% No mortgage insurance unless already have Ability to skip next 2 mortgage payments. FHA 203K Home Improvement Purchase or Refinance
With an FHA 203k loan can I remodel or improve? Yes, any or all of the following:
Paint Repair a kitchen Add a deck or patio Insulate for greater energy efficiency Replace flooring i.e. tile, carpet, etc. Add a bathroom, replace a bathroom Finish a basement Replace windows (for which you can get a nice energy credits well) Replace Appliances i.e. stove, furnace, and water heater energy credit Add central air (again energy credit here) And Much More Minimal Down Payment and Closing costs:
Down payment less 3.5% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. No reserves required. FHA regulated closing costs What can’t you do with an FHA203k mortgage loan?
Put in a pool or an ice skating rink Add a Theater Room and all the equipment (you could get away with the room) Any other Luxury item, such as gold plating the baseboards Putting in a yard So what do I have to do to get one of these FHA 203k loans?
There are some hoops to jump through to qualify:
Owner/occupants only no flipping or investors (and no you don’t have to be a 1st time home buyer to qualify) The house must have been completed for at least 1 year, no new construction houses, sorry You will need to have 2 appraisals (one for the as-is value now and one for the projected value once the work is completed) You must identify the repairs and work to be done, and have a written estimate of materials and labor by a licensed contractor and an interior plan of the home. Repairs and addition must have the proper permits, inspections and be done to code And most of all..you must be able to qualify for the finished product (cost of house + rehab money), so you can’t buy that million dollar fixer upper folks, sorry..well unless you can afford that million dollar home. You must still have your 3.5% percent down payment for the entire purchase price (home + rehab money). ALTERNATIVE Lending Products
If you do not qualify for Conventional or FHA/VA loan product due to a recent unforeseen event, then we do recommend you take a look at our suite of alternative lending products that will help you qualify for your new home purchase.
We understand bad things can happen to good people, so we have created the following lending options for the following types of scenarios and borrowers.
Our Fresh Start mortgage program is designed to help lend to borrowers who have had a recent short sale, foreclosure, or a bankruptcy. Typically if any of these events happen to you, there is a 2-4 year waiting period from the discharge date or sale date, to obtain a new mortgage using conventional or FHA financing.
Some of the Loan Features of Fresh Start include:
LTV up to 85% with no Mortgage Insurance Minimum Credit Score 580 DTI Ratios greater then 50% considered Up to $350,000 cash back on refinances
Bank Statement Programs
For most self employed individuals and small businesses, everything is usually being expensed, so while you know your business and bottom line is profitable, when it comes time to look at the actual tax return, a lot less is being reported, which poses a problem for traditional mortgage financing.
With our Bank Statement Program, we can use 12-24 Months of your personal or business deposits to come up with a qualifying income for you. This really takes away a lot of the stress with these types of borrowers because they can qualify off of the deposits.
Some of the Loan Features of Bank Statement Program include:
50% of business deposits used to qualify 100% of personal deposits used to qualify LTV up to 90% Loan Amounts up to $1,000,000