Since the mortgage crisis started in the Spring of 2008, 100% financing loan programs have become few and far between. Here are a few details of a relatively new program that BB&T is offering, it seems like a great program for qualifying buyers.
The program is called Community Homeownership Incentive Program or "CHIP" for short. Qualifying buyers can get up to 100% financing (NO MONEY DOWN) with NO PMI (Private Mortgage Insurance).
- Loan amounts up to $417,000.00
- Maximum income limits: 97% financing - $66,500.00, 100% financing - $53,200.00 household income. No income limits in HUD designated underserved areas. HUD designated underserved areas can be
- Ratios: 33% housing, 41% total debt. Can go up to 45% with 720 credit score and no other debt
- Term: 30 year fixed only
- Homebuyer Education: Required
- Can use approved down payment assistance program or qualified gift
- Property: Single family residence, townhouse or condo
- Minimum buyer contribution: $500.00
- Reserves: 97% financing - one month PITI, 100% financing - two months PITI
To determine if a property is located in a HUD designated underserved area, which eliminates the income limit for this program, take the following steps:
- Enter the property address here to get the census tract http://www.ffiec.gov/Geocode/default.aspx
- Then go to Freddie Mac's Underserved Census Tract List (about halfway down this page) http://ww3.freddiemac.com/ds2/sell/affgold.nsf/frmStateOpenForm&State=NORTH+CAROLINA#0420.00
Buyer Credit Qualifications:
- No 30 day delinquencies within the past 12 months. Derogatory credit must be explained. Collections may not have to be paid, but judgments must be paid off.
- Student loan payments will not be counted in debt as long as payment will be deferred at least 36 months from loan closing.
- For 100% financing, minimum credit score must be 680.
- Non-traditional credit sources can be utilized. Must be opened and maintained for 12 months. Minimum number is three sources of non-traditional credit.
Of course... Loans are subject to approval & this loan program can be modified or discontinued at anytime without notice.
Contact me anytime for more information about this program and for all of your real estate needs. I look forward to helping you find your new home!