My Favorite Way of Financing for a House
In my quest to provide my clients with the best knowledge in real estate related issues, I have come accross with variety of providers and professional services that are beneficial to my clients. Out of the many services that I am aware of, two mortgage products are outstanding, and it is worth mentioning on my website. 1. 100% Financing
We can still do 100% Financing with tese Down Payment Assistance Programs: Down Payment Assistance Programs
Nehemiah Down Payment Assistance Program
City of Raleigh Down Payment Assistance Program (Pam Pollard of BayBanc is familier with this program)
USDA Rural Area 100% Financing
NC Housing Finance Agency Down Payment Program (Judy Buddie, Wells Fargo is familier with this program)
NC Down Payment Assistance (American Dream DPA) 2. Job Loss Mortgage Protection
Many Mortgage Companies are offering Job Loss Protection, where if you buy a house, and lost a job within a year, the lender will pick up your mortgage payment. Call me for more details at 919-342-5670. 3. $8,000 Cash Back
First-time Buyers, don't let $8,000 slip away. You will need to close before 12/1/09. $8,000 First-Time Home Buyer Tax Credit
Tax Credit Provides Outstanding Opportunity for Home Buyers A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. For more detailed information, visit:
$8,000 Federal Housing Tax Credit 4. Let Other People Pay for Your Closing Costs
If you need help with closing cost which can be as high as 3-5% of your purchase price, let me help you get it either from the lender or from the seller or combination of it. Call me for more details at 919-342-5670. 5. New Product for Baby Boomers 62 yr or Older If you are about to pay cash for your next house, why not have 50%-90% of the price be financed by a Reverse Mortgage? Using Reverse Mortgage to purchase your home is a new concept, and it makes alot of sense because there is no mortgage payment on it. Therefore, after 10%-50% is paid out of your pocket, there will be no house payment. The mortgage insurance is designed to cover any shortage if the value of the house declines, and the hairs of estate are never burdened with any deficiency. For more information, contact:
Peter Benoit
Reverse Mortgage Specialist
102 Kensbury Circle
Cary, NC 27513
919-462-1674 (tel)
919-882-9092 (fax)
pbenoit@nc.rr.com 6. Accelerated Mortgage. This product works like a revolving line of credit and a checking account put in together. Once you buy a house with this mortgage, you will do banking with this account. All your income and expense are transactioned using this account, thereby eliminating a watsed non-working savings account. All your income will work to reduce the principal every time you deposit, and all living expenses are paid using your line of credit. Your balance will fluctuate throughout the life of your loan, but it's OK, there is no wasted money that is not working. You must not use the account like a credit card. Do not abuse the previledge of having the line of credit to purchase unnecessary items. Your credit line will never decrease, so in an emergency, you can use the account to tap into your equity anytime as fast as writing a check. As an alternative and for an advanced user of this account, the line of credit can be tapped in to invest into other higher paying investment vehicles. That is mentioned in the "My Retirement Plan" on this website. There are other products called MMA (Money Merge Account) claiming to cut the mortgage payment in half, by charging you thousands of dollars to have access to a software. This this method, you first have to refinance with a Line of credit type of mortgage, and since you have a separate checking account, the software tells you when to move the money into the line of credit, and how much check to write in order to reduce the pricipal. That is a lot of tidious work on your part. Accelerated Mortgage is not for everyone. Obviously, you must be deciplined not to touch the readily available line of credit. However, if you know how to use this powerful mortgage, the benefits are enourmous. Many people are able to cut the mortgage in half or thrid, depending on how much principal reduction you can apply. 7. NACA (Neighborhood Assistance Corporation of America) Another product is offered by NACA (Neighborhood Assistance Corporation of America). This is a non-profit organization, an advocate for buyers fighting off preditory lending practices. NACA gives every one the same interest rate. As of this writing, today, 1/27/08, the interest rate they are offering is 4.375%. It is a 30-yr fixed conventional loan. Regardless of you credit score, they will give you the same rate. They pay all your closing costs, and they will assist you in repair process of your house. However, you must follow their struct guideline. You must first attend their work shop, and learn what this organization is all about, and then make an appointment to start the process to get qualified. Tax IDs (instead of Social Security Number) are also accepted here. I am qualified realtor to handle NACA loans. One of the very unique program they have is called a "Buy-down" program. You must know how to apply this concept. However, if your realtor is successful in negotiating the seller to pay as much buy down as possible, your interest rate will fall down to 0 percent in the best scenario. Again, NACA is not for everyone. They work off of only word of mouth. They do not advertise. They don't have to. As a result of this fantastic mortgage product, they now have too many clients, and their efficiency is compromised sometimes. Another words, they take too long to process. Then, again, if you have a great score, and have all paperwork together, you may be able to get qualified as fast as one day. Most people takes 2-3 months to qualify, and some has taken 6 months or 1 year to qualify. Even with the client that underwent the one year of process with NACA, the result is worth waiting, and worth the hassle. So, let me know if you are interested in either of these products. I can stirr you into the right direction. For example, I had a client that was approved by NACA to buy a house with $1100/mo payment. I was able to negotiate with the seller to give her $8000 to buy down her interest rate. Her interest rate dropped from 5% to 3.25%, and that meant that she had more buying power. Her monthly payment stayed the same, but because the interest rate went down, she could afford to buy a higher priced house. You do not have to be a first time home buyer. However, NACA financing can only be used for primary residence. Therefore, you cannot have more than one house financed by NACA. Also, NACA has a maximum limitation of how much they will loan for a house depending on where the house is. Yoko Kashima
Weichert Realtors - Triangle Homes
Life-Time Real Estate Consultant
e-PRO Certified
REO & Short-Sale Certified
Stone Creek Shopping Center
(Davis & High House)
(Next to Chop House Grille)
1408 Boulderstone Way
Cary, NC 27519
(919) 342-5670 Direct Line
(919) 319-8860 Cell Phone
(866) 929-3739 Direct Fax
(888) 551-0315 Toll-Free
e-mail: yKashima@WRTriangle.com |