Friday, December 5, 2008

102% FINANCING STILL AVAILABLE THROUGH SELECT LENDERS, THE SECTION 502 LOAN

SECTION 502 LOANS

The Rural Housing Loan provides 102% (based off appraised value) financing for borrowers that meet the income and credit guidelines, with NO mortgage insurance.

No out of pocket expenses necessary (102% of appraised value can be borrowed, closing costs and prepaids can be paid via gift, or seller contributions)

Sellers can contribute up to 6% of the sales price towards prepaid items, and closing costs, including rate buy downs.

Section 502 loans are primariyl used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Owner occupied only.

One loan to 102%, no mortgage insurance, and value is based of appraisal, not contact.

Borrower can only own one property.

Applicants for loans may have an income of up to 115% of the median income for the area, as defined below.

115% of Eagle/Summit median income;

1 person household=$61,900
2 person household=$70,700
3 person household=$79,550
4 person household=$88,400

30 year fixed rate is the only loan program available currently however it is below market rates

Max loan size $417,000

Call me for further details....970-376-1244

0 comments: