Blog of the Mortgage

Many of you are have noticed that the MyCommunity 100, Flex 100 and HomePossible 100 are all gone in the Whole state of California.
Declining/Adverse/Soft Markets have taken these off of everyone's rate-sheets in the past months.
Notice we were first to lead on that one, it's nice to see others follow along.

Home prices have come down and now there seem to be more buyers in the market, taking their time, reviewing their options. Sellers want to attract these people to their places with options (outside of the Sub-Zero and Wolf Range).
DPA's or DAP's as some people call them are the saving grace STILL AVAILABLE for FHA programs.
DPA = Down Payment Assistance (DAP is the same thing but some people use this instead).
The way they work is this:
The seller lists their home with the with the program of their choice (Nehemiah and Ameridream are two of the biggest and nationwide). The cost to the seller is .75% of the loan or $500 not to exceed $500.
The Realtor can now advertise this property as true 100% financing (provided the price is within the FHA limits for the area) to the marketplace because the seller is in effect going to help with the down payment.
The Seller may contribute anywhere from 1-6% to the DPA program they've enrolled in. This in turn allows the the DPA Program to contribute this same amount into Escrow prior to closing.
The seller's Contribution comes out of the proceeds of the sale while the settlement statement is finalized and the transaction is seam-less.
You can get a list of DPA's in the state and view other important links on my Government Page here:
www.your-ae.com/gov
Why are these programs important now?
Besides the fact that true 100% financing is no longer available through conventional methods these programs are important for a number of reasons.
1. Home sellers and their Realtors no longer have to Cut prices to attract buyers, they can instead enroll in the Gift Program and maintain the price creating stability in the market.
2. 100% is now only offered on full-doc loans within the realm of FHA insured reason. These buyers ACTUALLY have to qualify on the merits of their income as opposed to credit score thereby improving the buyers pool dramatically.
3. These programs do not inhibit the credit for closing cost allowance under FHA guides to 6% so the total credit could potentially equal 12% through the different channels!

With our Turn times at Just 3 Days and pricing as hot as it is you can't go wrong!