Available Financing Programs for Home Purchases in Statesville NC

Can you believe it is already mid-July?  I am not sure where the summer is going but I can tell you that it has been a busy one so far.  A recent article in the Wall Street Journal announced that The U.S. Housing Bust is Over and that housing prices are on the rise.  The numbers show that much of the increase has been due to  investors purchasing homes to rent out as rents are at an all time high right now with little vacancy.In fact, in the last month, I personally have encountered sellers that are refusing to budge on price, multiple offers on a property, new construction selling in under 30 days and loosening credit guidelines for some borrowers.  All signs of an improving market and signs that I for one will welcome.  The opportunity is prime for home buyers and investors with rates under 3.5% this week.  If you have not already taken my FREE investor course, click here to get signed up.  I will be adding some great reports to my website soon that you will love!

Now….Let’s talk about financing options available out there:  If you are a first time home buyers, knowing the different types of financing available can be confusing so I will try to help you out with the basics.  Underwriting guidelines are complicated and will vary from bank to bank and broker to broker, so you may need to check several different sources to get the best program for you.

UDSA Rural Development Website

USDA Rural Development Loans:  These loans are great if you are short on cash.  USDA offers 100% financing for qualified homes.  In the Statesville area, this means homes outside the city limites.  All of Troutman and Mooresville qualify for USDA.  You can check the map for any address you are considering at their website.  These loans are very popular in our area as the buyers can get into a home with very litte money out of pocket.  You can ask the seller to pay your closing costs and will not need a down payment.  USDA does have a income limitation and that can also be found on their website.  There are several types of USDA loans but for the most part, we use the USDA Guaranteed Loan or the USDA Direct Loan (for very low income buyers).  The USDA funding fee is rolled into your loan and rates are based on current market rates.  Talk with your lender about all the details for qualifying.  USDA loans do not have mortgage Insurance.

FHA Loans: The Federal Housing Administration, which is part of HUD, insures your loan so that you can qualify for better terms. They do not actually lend the money, but guarantee the loan for the lender based on certain guidelines set by FHA.  In many cases, the lenders will also have additional qualifying guidelines that may be more stringent than FHA that you will also need to qualify under.  These additional guidelines will vary from lender to lender so be sure to shop around.  With FHA loans, there are many options available depending on situation:  FHA loans do include Mortgage Insurance in the monthly payment.

What does FHA have for you?

Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.

Want a fixer-upper?
FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs – all in one loan.  Called the 203K Loan.

Financial help for seniors
Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer “yes” to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.

Want to make your home more energy efficient?
You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.

How about manufactured housing and mobile homes?
Yes, FHA has financing for mobile homes and factory-built housing. They have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.
BB&T CHIP Loan:  This loan is very similar to the USDA Guaranteed loan as far as qualifying but it allows you to use the 100% loan within the city limits of Statesville.  The Community Housing Investment Program offers no down payment and favorable terms.  There are also limits on income but well worth a look if you want to be close to downtown. This program does not have mortgage insurance allowing for higher buying limits.  Talk to your local BB&T loan officer for all the details.

VA Guaranteed Loan:  For our veterans out there, you may find a great deal on a VA loan.  If you are eligible, you will find lending guidelines are much easier than traditional financing.
A VA-guaranteed loan can be used to:
·         buy a home, a manufactured home, or a condominium
·         buy a lot for a manufactured home
·         build, repair, or improve a home (including energy efficient improvements)
·         refinance an existing loan

A VA-guaranteed loan offers a number of safeguards and advantages over a non VA-guaranteed loan.  For example, the interest rate is competitive with conventional rates with little or no down payment required.  VA-guaranteed loans are made by private lenders, such as banks, savings and loan associations, and mortgage companies.  As with any loan, you must apply directly to the lender.  Your real estate broker can assist you in finding a lender.

NC Housing Agency:  If income has kept you out of the housing market, you may want to take a look at NC Housing Programs.  They offer FHA, USDA Conventional and VA loans at very competitive rates for first time home buyers plus you may quality for up to $8000 in down payment assistance or for a $25000 second mortgage to help with purchasing a new home.  First time home buyers should also check into the MCC (Mortgage Credit Certificates) that is a Federal Tax Credit to assist buyers with low or moderate income.  This is really helpful in helping ot offset your monthly mortgage payment.  Ask your lender about these programs and if you qualify.  For a list of lenders, check out their website.

Fannie Mae Homepath Financing:
  HomePath financing, available only on Fannie Mae-owned properties, offers great benefits — low down payment, no mortgage insurance, expanded seller contributions, and more. HomePath Mortgage is available for move-in ready properties for both owner occupants and investors — a limited number of HomePath lenders also now offer HomePath Mortgage for the LLC borrower. The HomePath Renovation Mortgage provides both the funds to purchase and to renovate in one loan. You also can use the financing of your choice from any lender, such as your local bank, credit union or other financial institution.

OTHER:  You will also have 100% options available with your Credit Union or Conventional products that may fit your situation better.  There are many other sources available for financing your first home or for purchasing an investment property.  Feel free to call me anytime to discuss the various options or for a referral to one of my lenders.  Two of the best are listed below for you!

Continue reading Available Financing Programs for Home Purchases in Statesville NC

Buy a HUD home for just $100 down in Statesville NC and Iredell County.

Below is an article from my weekly e-blast sent out the buyers looking for homes in the Statesville NC area. If you would like to be added to the list to receive weekly distressed listings in Statesville, Iredell County, Troutman and Mooresville, please feel free to sign up and I will add you to my list. HUD Website

Happy Friday!

I hope you all received (and read) my May newsletter:) I have tried to keep you up to date on what is happening in the Statesville area and the market and I hope it is helpful. This week I would like to talk about buying a home for just $100 down. That’s right, HUD has a program available that allows you to buy a HUD home for just $100 down in conjunction with a FHA loan.

Normally, FHA has a 3.5% down payment requirement, but this program works with just $100. It is available for owner occupied FHA insurable HUD homes. The HUD $100 down program is a great opportunity to get into a foreclosed home for only $100 dollars. On November 23, 2007, The Department of Housing and Urban Development better known as the HUD $100 Down Payment Program announced a new buyer’s incentive program which went into effect to allow home buyers to use a $100 down payment under certain circumstances.

The $100 down payment HUD program in Statesville NC and surrounding areas allows people to buy homes in which they plan to live, using an FHA loan, as long as they offer HUD the full amount at which the home is listed. Using the HUD $100 dollar program has great benefits including seller paid closing costs up to 3% and a FREE appraisal. You will not have to come to closing with any more than the $100 if you get them to cover all your closing costs. What a deal!

HUD homes eligible for the $100 down payment program have all been foreclosed upon by their lenders; the loans involved in the foreclosure were FHA-insured. Other foreclosures on which the loans were not insured by the FHA do not become HUD homes and are not eligible for the $100 down payment program.

HUD has a great site for answering all your questions about buying a home and FHA Financing.

100 Questions & Answers About Buying A New Home

Search for HUD homes Here

You can always call me if you need additional information too! Questions and Answers on how to buy a new home Don’t forget… there is also the USDA 100% program available to homes outside the city limits. Call me for more details. Rates are hovering around 4.5% right now and the time to buy a home is perfect. Next week we will be talking about the Mortgage Credit available through NC Housing and how it can help you save thousands of dollars on your new home and help you reduce your monthly house payment. Stay tuned..


Statesville NC Real Estate Guide –Sonya Leonard, Exit Home Team Realty Agent Sonya Leonard of Exit Home Team Realty is your local real estate expert in Statesville North Carolina.  The Statesville Real Estate Guide provides free access to individualized home searches for all homes in Statesville, Mooresville, Troutman, Lake Norman and the entire Lake Norman Area.  Explore buyer and seller reports, community resources, new home communities, and be sure to sign up for you’re my exclusive FREE Weekly Distressed Sales List.  Let Sonya help you INVEST in Real Estate and your Future! (704) 450-0588. Exit Home Team Realty