Buying a house is a dream many people hold for years before they actually take the plunge. Unfortunately, not everyone can afford to set aside money for a down payment or even apply for a mortgage. This is where down payment assistance programs play an important role.
If you’re an American serving as a medical professional, educator, military, or government employee, chances are that you’ve looked up the Hometown Heroes Program, an FHA loan that offers a grant to eligible parties. As a Grant that pays up to 3.5% of the down payment, applicants must have a credit score of 620 or above and a DTI of no more than 49%.
But what if you don’t meet these requirements or work outside of these segmented professions? You’re in luck because we have an FHA loan that may help you sign the dotted line and get the home of your dreams!
The ACB Mortgage Solutions’ Second Chance Program offers you assistance with your down payment, allowing you to take out an additional 10-year second mortgage that will be consolidated to make one simple payment plan!
You heard that right—with the Second Chance Program, you’ll have absolutely NO down payment and enjoy 100% FHA financing. You’ll only have to go through ONE submission, ONE approval, and ONE closing!
Here are some of the incredible features of this game-changing program:
- 580 FICO minimum
- Manual underwrites allowed (40/50 DTI with 2 comp factors)
- 2nd Mortgage = 6% interest rate, 10 yr fixed amortization (must put payment into the DTI)
- Transferred appraisals allowed
- DTI per AUS
- No other U/Wing Overlays
- Gift funds allowed
- SFR, PUDs, Condos, Manufactured Homes and up to 4-unit properties allowed
- First Time Home Buyer education is required
- NON-OCC Coborrowers allowed
- ONE FICO Score allowed
That means this program features a 100% combined loan-to-value ratio! This is game-changing news for those who would otherwise be unable to afford a property for lack of a down payment.
What’s the Catch?
This loan comes with plenty of advantages, but every mortgage has its costs. When it comes to the Second Chance Program, you can expect a 6% fixed rate for the 10-year down payment. The remaining full FHA loan rate will range from 3.5% to 4.75% depending on credit score. While this is higher than some other mortgages, this is unsurprising given that it is a true 0% down payment loan.
With requirements that are easy to fulfil and plenty of attractive properties that quality, the Second Chance Program is a wonderful opportunity for those looking to become property owners for the very first time. If you’ve been looking for a mortgage that you qualify for and that isn’t intended for a segmented profession, this is the one you need! This type of loan product is offered only by a select few lenders. If you’re interested in getting one, contact ACB Mortgage Solutions today!