The Wow Loan

There is a great new niche loan for low income buyers that is worth checking out. It allows you to take advantage of the 30 year fixed rates that have ranged from 4.625% to 5.500% for the last 6 months.

Down Payment:

• Minimum 3% down. Gifts okay ($500.00 of buyer's own funds are required.)

• Seller contributions okay (4% to 6% depending on the Loan to Value.)

• Down Payment Assistance Program allowed (must be approved source.)

Credit WOW:

• Applicants will not be rejected based on a credit score (no minimum FICO score.)

• Collection accounts required to be paid off at closing.

• Flexible Guidelines, past bankruptcy will not disqualify applicant alone.

Housing Ratios / Income WOW:

• Qualifying ratios flexible from 38% - 60% (case-by-case depending on current housing cost.)

• Income limits apply by county. Split income okay.

• Undocumented income okay (limits apply.)

Loan Terms WOW:

• 30 year fixed

• Below market rates

Buyer Ready / Pre-Approvals:

• Below market rates with 60 day locks

• Credit Approval letter issued to buyer.  This is like having a check ready to buy a home!

Property Type / Owner Occupied 1-3 units:

• Owner occupied only

Banking Requirements WOW:

• No reserves needed after close.

• No mortgage insurance required on loans over 80% Loan to Value.

• Automatic payment set up.  Impound required on LTVs above 80% Loan to Value.

• First-time homebuyers education course.

• Can only own one property at time of closing.

Down Payment and Closing Cost Assistance WOW:

• 3% of purchase price.  Interest rate 3% simple interest annual.

• No monthly payment, due at refinance, move out or sale.