How to Increase Your Real Estate Buying Power Without Using Your Cash, Down Payment Assistance
Robert Smith and Associates
December 07, 2007
By Melvin Burrell
www.capitalloanspecialists.com
For some it may be hard to imagine, but there are first hand benefits for paying taxes. What are they you ask? The government uses our tax dollars to fund various home ownership incentive programs, at all levels of governments. Federal, state, county and
localities all offer home opportunity programs (H.O.P) through a multitude of means. These are actually our tax dollars at work! Many counties and cities offer down payment assistance programs, these programs increase ones buying power. While the federal and state governments provide affordable and stable financing through low interest rate loans. The majority, but not all, of the programs are intended for first time homebuyers (FTHB) and/or low to moderate-income buyers without a down payment. Buyers are encouraged to use these programs in conjunction with one another. They also provide funds to cover closing costs and to help rehabilitate the property if the property is somewhat distressed.
The federal government has an entire department dedicated to housing development – HUD (Housing and Urban development). Most are familiar with their FHA loans program, which for many years was the primary method used by Americans to purchase their home. These are still used by many people, but they have limitations that make it impossible for many residents of communities where the average price of homes are priced above the price limits set by HUD. The government has another department to help as well, FANNIE MAE. Fannie Mae offers a multitude of programs for home ownership; one of the most used programs is the MY COMMUNITY MORTGAGE (MCM).
MCM loans tend to be more flexible than FHA loans. MCM loans have higher loan limits, higher debt-to-income ratio allowances, zero down payment and less property restrictions. There are income limits; however, they can be waived under certain circumstances. MCM loans can also be combined with down payment assistance programs provided by counties or cities. Other programs offered with low or no down payments, by the Federal government are the “Flex “programs.
The State of California also offers first and second mortgages for homebuyers. Through the CALHFA program, California can offer its citizens low interest rate loans with no money down. They also have “jr.” liens available for down payments, closing costs, and/or rehabilitation of the property. For various professions they have even lower interest rates available. In addition to the low interest rate, they also have higher loan limits (much more suitable for the higher priced communities of California), higher debt-to-income ratio allowances, and liberal income limits. These loans can also be used in conjunction with down payment assistance programs. These loans are available throughout the state of California. Other states have similar programs, for information on any specific state, go to that states’ website.
Throughout the state, many local communities have grants and low interest and deferred payment loans available, for people to use towards down payments. What this does is increase the buying power of the consumer. For instance, the city of Los Angeles has an excellent down payment assistance program, in which they will provide up to $90,000 to be used as a down payment. Therefore, if you qualify for and can obtain a loan for $300,000 you could purchase a home for $390,000. You would not be required to make payments on the $90,000, just on the $300,000; if you utilize the CALHFA or the MCM loan you would qualify for more than the $300,000, because of the lower interest rates. This example demonstrates the L.A. program, but many other cities and counties have funds available and they all work pretty much the same. Within the California, contact myself Melvin Burrell at melvinb@caploanrealty.com or go to www.capitalloanspecialists.com and contact any of the loan specialists for assistance. Outside California go to your city’s city hall or the website and search housing”.
These programs are all designed to provide people the opportunity of achieving the ultimate dream of home ownership. They do this by providing affordable mortgages and down payment assistance with deferred payments allowing people to work within their means and still have the pride of ownership. Therefore, it behooves all who aspire to turn the dream into realty to seek out a qualified professional to guide them through the path to their home. Many people believe that they are just not qualified, but the reality is that many people are qualified. Do not procrastinate, these are programs that are funded and as with all programs that are funded, once the funds run out, we must wait for more funding. If more information is needed please go to www.capitalloanspecialists.com
For additional information on down payment assistance programs call Melvin Burrell at 800-208-8121 or email at MelvinB@caploanreallty.com or visit www.capitalloanspecialists.com and
www.capitalexecutiverealty.com
www.capitalloanspecialists.com
For some it may be hard to imagine, but there are first hand benefits for paying taxes. What are they you ask? The government uses our tax dollars to fund various home ownership incentive programs, at all levels of governments. Federal, state, county and
localities all offer home opportunity programs (H.O.P) through a multitude of means. These are actually our tax dollars at work! Many counties and cities offer down payment assistance programs, these programs increase ones buying power. While the federal and state governments provide affordable and stable financing through low interest rate loans. The majority, but not all, of the programs are intended for first time homebuyers (FTHB) and/or low to moderate-income buyers without a down payment. Buyers are encouraged to use these programs in conjunction with one another. They also provide funds to cover closing costs and to help rehabilitate the property if the property is somewhat distressed.
The federal government has an entire department dedicated to housing development – HUD (Housing and Urban development). Most are familiar with their FHA loans program, which for many years was the primary method used by Americans to purchase their home. These are still used by many people, but they have limitations that make it impossible for many residents of communities where the average price of homes are priced above the price limits set by HUD. The government has another department to help as well, FANNIE MAE. Fannie Mae offers a multitude of programs for home ownership; one of the most used programs is the MY COMMUNITY MORTGAGE (MCM).
MCM loans tend to be more flexible than FHA loans. MCM loans have higher loan limits, higher debt-to-income ratio allowances, zero down payment and less property restrictions. There are income limits; however, they can be waived under certain circumstances. MCM loans can also be combined with down payment assistance programs provided by counties or cities. Other programs offered with low or no down payments, by the Federal government are the “Flex “programs.
The State of California also offers first and second mortgages for homebuyers. Through the CALHFA program, California can offer its citizens low interest rate loans with no money down. They also have “jr.” liens available for down payments, closing costs, and/or rehabilitation of the property. For various professions they have even lower interest rates available. In addition to the low interest rate, they also have higher loan limits (much more suitable for the higher priced communities of California), higher debt-to-income ratio allowances, and liberal income limits. These loans can also be used in conjunction with down payment assistance programs. These loans are available throughout the state of California. Other states have similar programs, for information on any specific state, go to that states’ website.
Throughout the state, many local communities have grants and low interest and deferred payment loans available, for people to use towards down payments. What this does is increase the buying power of the consumer. For instance, the city of Los Angeles has an excellent down payment assistance program, in which they will provide up to $90,000 to be used as a down payment. Therefore, if you qualify for and can obtain a loan for $300,000 you could purchase a home for $390,000. You would not be required to make payments on the $90,000, just on the $300,000; if you utilize the CALHFA or the MCM loan you would qualify for more than the $300,000, because of the lower interest rates. This example demonstrates the L.A. program, but many other cities and counties have funds available and they all work pretty much the same. Within the California, contact myself Melvin Burrell at melvinb@caploanrealty.com or go to www.capitalloanspecialists.com and contact any of the loan specialists for assistance. Outside California go to your city’s city hall or the website and search housing”.
These programs are all designed to provide people the opportunity of achieving the ultimate dream of home ownership. They do this by providing affordable mortgages and down payment assistance with deferred payments allowing people to work within their means and still have the pride of ownership. Therefore, it behooves all who aspire to turn the dream into realty to seek out a qualified professional to guide them through the path to their home. Many people believe that they are just not qualified, but the reality is that many people are qualified. Do not procrastinate, these are programs that are funded and as with all programs that are funded, once the funds run out, we must wait for more funding. If more information is needed please go to www.capitalloanspecialists.com
For additional information on down payment assistance programs call Melvin Burrell at 800-208-8121 or email at MelvinB@caploanreallty.com or visit www.capitalloanspecialists.com and
www.capitalexecutiverealty.com
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