This new program is a great loan for buyers that do not have any of their own funds to put down on a home. There is an FHA first mortgage and then a Chenoa Fund second mortgage for 3.5% to meet the FHA down payment requirements. The best part is that under some circumstances, the second mortgage (soft second) does not have a monthly payment and is forgiven after 36 on-time payments. Amazing!
Here are a few details
- Fico scores down to 620
- Non-Occupant (Hi Mom!) co-borrowers allowed
- Seller can pay all closing costs so borrower can truly get into home with Zero funds
- Single family, condo and townhome properties
- To be eligible for the soft second, occupant must make less than 115% of the area median income. No payment and forgiven after 36 on-time payments
- If not eligible for soft second then there the second mortgage will have an option of 0% interest over 10 years of 5% interest over 30 years.
Please let me know if you have questions on this… and please pass along to anyone you know that might benefit from this program.