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Popular mortgage programs in North Carolina
If you are buying a home in North Carolina you may like to know the popular mortgage programs for our area. The top three loan types I see being used are Conventional, FHA and FHA with a down payment assistance program.
Conventional Mortgages
Conventional mortgages are loans that adhere to Fannie Mae or Freddie Mac guidelines. ‘Fannie’ and ‘Freddie’ are Government Sponsored Entities that buy and sell conventional mortgages. They set the maximum loan amount ($417,000 for our area) and requirements for borrowers. Conventional mortgages require at least a 5% down payment and will require mortgage insurance if the down payment is less than 20%. Many borrowers opt for a 30 year term but shorter terms are available.
FHA Loans
Another popular mortgage program is the FHA loan which allows for a 3.5% down payment, instead of the higher percentage required to secure many conventional loans. Taking advantage of the FHA loan program is a great way for buyers to buy a home with a smaller down payment. Another advantage of a FHA mortgage is that the credit qualifying criteria for a borrower are not as strict as conventional financing.
FHA Loans with Down Payment Assistance
Some first time home buyers also opt to pair a FHA loan up with a down payment assistance mortgage program like NC Housing Finance Agency (NCHFA) or House Charlotte. This isn’t a separate loan type but more akin to a sidecar to a FHA loan. Depending on the borrower’s income, credit history and the home’s price and location, a home buyer can obtain funds for their down payment and/or closing costs.
Want counsel on what mortgage program best fits your needs? Contact me at www.rebeccamadej.com to have a personalized assessment.
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As rates rise over the next few months, I expect we’ll see more first time home buyers using NC Housing’s loan programs. For each of the programs listed below, the buyer cannot have owned a home within the last three years and that their income does not exceed NCHFA’s income limits.As a refresher here are their main offerings:FirstHome Mortgage:This is NC Housing’s ‘bread and butter’ program. The main benefit of this program is it allows buyers to purchase a home at below market rates. The sales price limit is $210,000 for an existing home and $220,000 for a new one. Remember a 1% decrease in the interest rate could increase the purchasing power by approximately $15,000Down Payment AssistanceNCHFA’s DPA programs offer up to $4000 or $8000 in down payment assistance in the form of interest-free, deferred second mortgages. The borrower does need to have at least $1000 from their own funds in the transaction. Do keep in mind that homes built before January 1, 1978 and homes that are tenant-occupied are not eligibleMortgage Credit CertificateAnother benefit NC Housing has for first time home buyers is the Mortgage Credit Certificate program. Eligible buyers can claim 20% of their mortgage interest (up to $2000) as a tax credit by using the MCC. This program can be used with almost any type of mortgage, including adjustable rate mortgages. However, it cannot be used with any other NC Housing program (such as the FirstHome Mortgage).As you can see there are several options offered by NC Housing to help first time home buyers purchase a home. Have questions? Give me a call!Featured Loan Program
VA
Cunningham & Company offers 100% financing through VA mortgages. These loans are available to past and present service members and require no down payment and no mortgage insurance.
- Maximum loan amount with no down payment is $417,000
- VA eligibility can be used time and time again
- Fixed rates and ARMs available
- Reduced documentation available through automatic underwriting
- The funding fee can be financed into the loan
Have You Heard?
Looking ahead to the weekend, it seems we’ll have some warm weather to accompany any planned Easter egg hunts. Charlotte on the Cheap has a list of area “hunts” if you are looking for one near you. Ever wondered about the story behind this tradition? Read about the history of the Easter egg and check out Worldwide Easter Traditions at Schiele Museum in Gastonia this Friday from 1-3.
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Who says there are limited lending options these days? Sure, mortgage lending guidelines have tightened but that was a reasonable response to loose lending which resulted in high levels of fraud and loan default. That doesn’t mean all of the exciting programs are gone.
Just this past Friday North Carolina Housing Finance Agency announced they are offering a 3.99% fixed rate program for buyers of eligible NCHFA owned foreclosures. Holy cow. Potential buyers can browse these homes to score an incredible deal. NCHFA is no stranger to offering incredible options to home buyers. In addition to this REO program, their offers range from $8000 down payment assistance to an additional tax credit.
People often wonder why it is important to be fully preapproved before searching for their next home. When a client has the opportunity to look at their “big picture,” they benefit in several ways. By examining all their variables, clients are presented with program options – some they might not have even heard of. As their mortgage adviser, we talk about what they can really afford, weigh the pros/cons of different programs and evaluate what will be a short and long-term smart choice. As a home buyer, having an advocate in your corner before you begin the home search process can really pay off. There are just too many opportunities out there to leave a great one on the table.
Featured Loan Program
Mortgage Credit Certificate
Cunningham & Company along with North Carolina Housing Finance Agency offers the Mortgage Credit Certificate program to help qualified homebuyers obtain a federal tax credit.· Must meet income requirements, sales price, and first-time home buyer guidelines· MCC can be used with almost any type of mortgage, including adjustable rate mortgages.· Eligible buyers can claim 20% of their mortgage interest (up to $2000)Have You Heard?
Lá Fhéile Pádraig Sona Duit! You’ll be hearing that a lot if you venture into town on Saturday the 13th for the 14th Annual St. Patrick’s Day Parade and Charlotte Goes Green Festival. Afterward, be sure to check out the newly restored Ri Ra Irish Pub. After being damaged by a fire last May, they are back in the game and ready for the crowds.Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!
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With foreclosure filings falling 8%, industry experts are speculating if this is another sign of the housing market’s recovery. Could be. However, with modifications being few and far between and suspicions of the impending impact of adjusting Option ARM mortgages, there are lingering concerns about a shadow foreclosure market. What is certain is as long as foreclosures are a normal part of our market, home prices will remain low.
Since good deals can be found and some may be in great condition, buyers are increasingly interested in foreclosures. Some good tips for buying foreclosures include knowing more about the process and what programs are available. An excellent example is NC Housing’s NSP program for foreclosures. Funded through Neighborhood Stabilization Program, this option can be used by first time home buyers purchasing a foreclosure. Keep in mind there are guidelines on who can qualify and items found on the inspection may need to be repaired. But for the right buyer, this can be an incredible opportunity.
Every business has to think and play smart these days to stay above water. It seems like just as we start to hear good news about the market, another report comes in about a failing company. Turning a negative situation into a positive one is difficult but you always seem to come out stronger in the end. Staying connected with your clients and colleagues will help your business significantly.
This week is a busy one for economic reports – there are five on the agenda – and we’ll see the last Federal Open Market Committee meeting of the year. Two of the five economic reports are considered to be important and should have a strong impact on the markets and mortgage rates. Tuesday and Wednesday should be the most active.
Featured Loan Program
North Carolina Housing Finance Agency NSP loan
Cunningham & Company along with NCHFA offers up to $14,900 in down payment/closing cost assistance for borrowers purchasing an eligible foreclosed property.
· Must meet income requirements, sales price, and first-time home buyer guidelines
· The 5-year, 0% interest deferred loans may be forgiven for 20% per year for each full year the borrower owns and lives in the property
· Borrower must complete 8 hours of classroom or in-person home buyer counseling
· Eligible properties include single family residences, condominiums, and townhomes
· Sales price cannot exceed $210,000Have you heard?
Have you heard about NoDa’s All Art Market? This free event features over 60 local artists and their original artwork. It is sure to help you find the perfect gift for those “hard to buy for” recipients. It is located at the Neighborhood Theatre (511 East 36th Street) on the 16th and 17th from 6pm – 10pm. Happy shopping!
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