Tag: san mateo first time buyer program

First Time Home Buyer Loan Programs

Happy New Year!

I wanted to share this article about loan programs becuase owning your own home is a goal near and dear to my heart.  If you’re looking to make homeownership your goal – contact The Caton Team – we love what we do and we love helping people achieve their goal of homeownership!

Summary: First-time homebuyer loans and programs

  1. FHA loan program: A loan insured by the Federal Housing Administration. Good for those with low credit scores and little money saved for a down payment.
  2. USDA loan program: A loan program 100 percent guaranteed by the U.S. Department of Agriculture for lower-income borrowers in eligible rural areas.
  3. VA loan program: A loan backed by the U.S. Department of Veteran Affairs that allows no down payment for military personnel, veterans and their families.
  4. Good Neighbor Next Door buyer aid program: A HUD program that provides housing aid for law enforcement officers, firefighters, emergency medical technicians and teachers.
  5. Fannie Mae or Freddie Mac loan program: Conventional loans backed by Fannie Mae or Freddie Mac require 3 percent down. Good for those with strong credit.
  6. HomePath ReadyBuyer Program: A program that provides 3 percent in closing cost assistance to first-time buyers. Must complete an educational course and buy a foreclosed Fannie Mae property.
  7. Energy-efficient mortgage program: Backed by FHA or VA loan programs and allows borrowers to combine the cost of energy-efficient upgrades onto a primary loan upfront.
  8. FHA Section 203(k) loan program: Borrow the funds needed to pay for home improvement projects and roll the costs into one FHA loan with your primary mortgage.
  9. Local first-time homebuyer programs and grants: Many states and cities offer first-time buyer programs and grants for down payment or closing cost assistance.
  10. Native American Direct Loan: This VA-backed program provides direct home loans to eligible Native American veterans to buy, renovate or build homes on federal trust land.

1. FHA loan

Best for: Buyers with low credit and smaller down payments.

Not having enough money for a 20 percent down payment may deter you from buying a home, but it shouldn’t. Insured by the Federal Housing Administration, FHA loans typically come with smaller down payments and lower credit score requirements than most conventional loans. First-time homebuyers can buy a home with a minimum credit score of 580 and as little as 3.5 percent down or a credit score of 500 to 579 with at least 10 percent down.

FHA loans have one big catch called mortgage insurance. You’ll pay an upfront premium and annual premiums, driving up your overall borrowing costs. Unlike homeowners insurance, this coverage doesn’t protect you; it protects the lender in case you default on the loan.

Learn more about finding the best FHA lender for you.

2. USDA loan

Best for: Borrowers with lower or moderate incomes purchasing a home in a USDA-eligible rural area.

The U.S. Department of Agriculture, or USDA, guarantees loans for some rural homes and you can get 100 percent financing. This doesn’t mean you have to buy a farm or shack up with livestock, but you do have to buy a home in a USDA-eligible area.

USDA loans also have income limits based on where you live, meaning they’re geared toward folks who earn lower to moderate incomes. Typically, you need a credit score of 640 or higher to qualify for a streamlined USDA loan. If your score falls short, you’ll have to provide extra documentation on your payment history to get a stamp of approval.

3. VA loan

Best for: Active-duty military members, veterans and their spouses.

Many U.S. military members (active duty and veterans) are eligible for loans backed by the U.S. Department of Veterans Affairs, or VA. VA loansare a sweet deal for eligible borrowers because they come with lower interest rates than most other loan types and require no down payment. A funding fee is required on VA loans, but that fee can be rolled into your loan costs and some service members may be exempt from paying it altogether.

Other VA loan perks include no PMI or minimum credit score. If you struggle to make payments on the mortgage, the VA can negotiate with the lender on your behalf to take some stress from the equation.

4. Good Neighbor Next Door

Best for: Teachers, law enforcement, firefighters and emergency medical technicians.

The Good Neighbor Next Door program is sponsored by the U.S. Department of Housing and Urban Development (HUD). It provides housing aid for law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers.

Through this program, you can receive a discount of 50 percent on a home’s listed price in regions known as “revitalization areas.” Using the program’s website, you can search for properties available in your state. You must commit to living in the home for at least 36 months.

5. Fannie Mae or Freddie Mac

Best for: Borrowers with strong credit but minimal down payments.

These government-sponsored enterprises, or GSEs, set borrowing guidelines for loans they’re willing to buy from conventional lenders on the secondary mortgage market.

Both programs require a minimum down payment of 3 percent. Homebuyers also need a minimum credit score of 620 (or higher, depending on the lender) and a relatively unblemished financial and credit history to qualify. Fannie Mae accepts a debt-to-income ratio as high as 50 percent in some cases. You’ll still pay for PMI because you’re putting less than 20 percent down, but you can get it canceled once your loan-to-value ratio drops below 80 percent.

6. Fannie Mae’s HomePath ReadyBuyer Program

Best for: First-time homebuyers who help for closing costs willing to buy a foreclosed home.

Fannie Mae’s HomePath ReadyBuyer program is geared toward first-time buyers interested in foreclosed homes that are owned by Fannie Mae. After taking a required online homebuying education course, eligible borrowers can receive up to 3 percent in closing cost assistance toward the purchase of a HomePath property. The trick is finding a HomePath property in your market, which might be a challenge since foreclosures account for a smaller chunk of listings today.

7. Energy-efficient mortgage (EEM)

Best for: Homebuyers who want to make their home more energy-efficient but lack up-front cash for upgrades.

Making a home more energy efficient is good for the environment, and good for your wallet by lowering your utility bills. Making green upgrades can be costly, but you can get an energy-efficient mortgage, or EEM loan, that’s insured through the FHA or VA programs.

An EEM loan lets you tack the cost of energy-efficient upgrades (think new insulation, a more efficient HVAC system or double-paned windows) onto your primary loan upfront — all without a larger down payment.

8. FHA Section 203(k)

Best for: Homebuyers interested in purchasing a fixer-upper but who don’t have a lot of cash to make major home improvements.

If you’re brave enough to take on a fixer-upper but don’t have the extra money to pay for renovations, an FHA Section 203(k) loan is worth a look.

Backed by the FHA, the loan calculates the home’s value after improvements have been made. You can then borrow the funds needed to pay for home improvement projects and roll the costs into one loan with your primary loan amount. You’ll need a down payment of at least 3.5 percent, and improvements must cost more than $5,000.

9. State and local first-time homebuyer programs and grants

Best for: First-time homebuyers who need closing cost or down payment assistance.

In an effort to attract new residents, many states and cities offer first-time homebuyer grants and programs. The aid comes in the form of grants that don’t have to be repaid or low-interest loans with deferred repayment to cover down payment or closing costs. Some programs may have income limits, too. Before buying a home, check your state’s housing authority website for more information.

Contact a real estate agent or local HUD-approved housing counseling agency to learn more about first-time homebuyer loans in your area.

First-time homebuyer programs by state:

10. Native American Direct Loan

Best for: Eligible Native American veterans wishing to buy a home on federal trust land.

The Native American Direct Loan provides financing to eligible Native American veterans to buy, improve or build a home on federal trust land. This loan differs from traditional VA loans in that the VA is the mortgage lender.

The NADL has no down payment or private insurance requirements, and closing costs are low. And you’re not limited to only one property; you can get more than one NADL. Not all states are eligible, though.

Learn more:

I read this article at: LOAN PROGRAMS

Got Real Estate Questions?   The Caton Team is here to help.

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.  How can The Caton Team help you?

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654

Email |   Info@TheCatonTeam.com

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

The Caton Team Testimonials | The Caton Team Blog – The Real Estate Beat | TheCatonTeam.com | Facebook | Instagram | HomeSnap | Pintrest | LinkedIN Sabrina | LinkedIN Susan

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts.  Information is deemed reliable but not guaranteed. Third party information not verified.


 

First-Time Home Buyer Workshop – Get to know the HEART – 5% Down Payment Loan Program for San Mateo County

* If you cannot attend the workshop, please do not hesitate to contact The Caton Team. We’d be more than happy to help you.*

Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654

Email |   Info@TheCatonTeam.com

Are you a First-Time Home Buyer?  

Does saving 20% for the down-payment seem daunting?  

Does paying Private Mortgage Insurance (PMI) frost your cookies?  

Then you need to learn about the HEART LOAN of San Mateo County and this workshop is a must!

Get to know the HEART San Mateo County Loan Program – on Wednesday October 30, 2019 at the San Carlos library. 

If you’re buying your first home in this market, you know how painfully hard it is to save for the 20% down-payment.  Must banks require 20% and anything less requires expensive and pointless Private Mortgage Insurance (PMI).  Well the HEART loan – Housing Endowment and Regional Trust of San Mateo is here to help.  They are offering 5% down with NO PMI.  You carry a 30 year, 80% 1st mortgage and a 15 year ,15% 2nd mortgage.  This loan covers single family homes, condos and townhomes anywhere in San Mateo County for a vaule up to $908,156.

The Caton Team has helped several families get into their first home with the HEART program through Meriwest. 

For more information – HEART and Meriwest are hosting a FREE loan workshop at the San Carlos library at 6pm on Wednesday October 30th.  Register Here. 

Buying and Selling Real Estate doesn’t have to be scary – contact The Caton Team at any time for more information.  We love what we do and would love to help you!

Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654

Email |   Info@TheCatonTeam.com

For more information or to Register – click here. 

 

 

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Got Real Estate Questions?   The Caton Team is here to help.

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.  How can The Caton Team help you?

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654

Email |   Info@TheCatonTeam.com

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

The Caton Team Testimonials | The Caton Team Blog – The Real Estate Beat | TheCatonTeam.com | Facebook | Instagram | HomeSnap | Pintrest | LinkedIN Sabrina | LinkedIN Susan

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts.  Information is deemed reliable but not guaranteed. Third party information not verified.


 

Resources for Lower-Income Homebuyers – YEAH!!!!!!!!

Reading the paper this morning – it was refreshing to see information to help local want-to-be homeowners find some assistance.  Enjoy this article I found in SF Chronicle.  If you have questions – email me anytime at info@TheCatonTeam.com

Resources for lower-income homebuyers

Programs available to give low-income people a chance in difficult market

By Carolyn Said at SF Chronicle

San Francisco — Wakeelah and Andre Davis “always wanted to own a home and had been saving up,” said Wakeelah, an AC Transit bus driver. Like many first-time home buyers, especially those of modest means, they were consistently outbid by investors who could pay all cash.

“I kind of gave up for awhile,” Wakeelah Davis said. Then she came across a Richmond two-bedroom. The online listing said it would only be sold to people who wanted to live in it. The listing asked, “Tired of being beat out by cash offers?

“That sparked my interest to come back and try,” she said. “I thought maybe I’ll have a chance.”

The ad had another unusual requirement: It asked prospective buyers to write a letter about themselves, their house-hunting quest and their ties to the community.

“I told them I was born and raised in Richmond and I love the area. I graduated from Kennedy High and that’s where my son wants to attend,” said Wakeelah, whose son Dre’onn, 13, is now in middle school.

Even though theirs wasn’t the highest offer, the Davis family was selected to buy the house.

The seller was a nonprofit with a mission to buy, renovate and resell foreclosed houses only to owner-occupants under the unwieldy name “Foreclosure Recovery and Asset Building Management Project.”

“We want to help low- to moderate-income families get into homeownership so they can increase their self-sufficiency,” said Nicole Taylor, CEO of the East Bay Community Foundation in Oakland, which provided seed money for the program as a project of Self-Help Community Development Corp. “The idea was that maybe we could help families turn around their lives by providing them with an opportunity to buy this key asset that can grow in value.”

The mission also includes boosting local communities.

“We seek families who have roots in the community so they can maintain their family ties and help neighborhoods by having more stable families,” said Paul Staley, vice president of Self-Help Community Development Corp.

Pilot program

In operation since 2010, the program has handled just 18 homes, mainly in Contra Costa County, although it’s branching into Oakland. Taylor sees it as a pilot program and hopes to find funds to expand.A variety of similar programs exist that buy, fix and resell foreclosures to homeowners. Some use funds from the federal Neighborhood Stabilization Program, which was set up to help communities hard-hit by foreclosures and blight but is winding down.

But all such programs “are just a drop in the bucket,” said Maria Benjamin, executive director of Community Housing Development Corp. of North Richmond, which provides financial education to prospective home buyers, including those in the Self-Help program. “They are few and far between; there just isn’t enough money.”

Besides the resold-foreclosures programs, there are a variety of resources for low- and moderate-income people seeking to buy homes (see box). Though not enough to meet demand, it behooves prospective home buyers to learn about them, experts said.

Some advocates say the government should be doing much more to encourage and support lower-income homeowners.

Sasha Werblin, economic equity director at Berkeley’s nonprofit Greenlining Institute, which tries to extend opportunities to people regardless of race or income, listed several policy areas where she hopes legislators and regulators will take action.

They include pushing banks to create “sustainable mortgage products that work for middle- and low-income borrowers,” she said, adding that it’s critically important that borrowers demonstrate income to pay back loans, to avoid a repeat of the subprime lending disaster. Another step would be a bank-backed pool of funds for down-payment assistance, she said. She’d also like to see lenders pay closer attention to borrowers’ payment history, giving credit for a history of on-time rent and utilities payments – something that current credit scoring systems don’t take into account.

“We’d like the administration to take a more comprehensive and proactive stance about homeownership for everyone,” she said.

Wish list for help

Sheri Powers, director of the homeownership center at Oakland’s Unity Council, works directly with prospective home buyers. Her wish list for government help includes a way to urge banks selling foreclosures to sell to owner-occupants rather than investors.

“If they are serious about stabilizing communities, giving preference to buyers who want to occupy homes would make a huge difference,” she said. “Right now, they just want to sell as fast as possible. If an investor has cash, they’ll just lap it up – even if it’s $20,000 or $30,000 lower” than financed offers that take longer to close.

Resources for home buyers

A variety of programs provide help for low- and moderate-income home buyers, ranging from advice to money. Each program has different criteria.

Counseling and education

Find an agency near you for home-buyer education workshops and information on financial-assistance programs.

Neighborworks agencies, www.nw.org/network/nwdata/homeownershipcenter.asp

— HUD counseling agencies, www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?&webListAction=search&searchstate=CA

Down payment and financial assistance

Most programs have income and/or geography requirements. Many large cities – including San Francisco, Oakland, San Jose, Alameda, Hayward and San Leandro – offer programs. Do a Web search of your target city and “down payment assistance.”

— California Home Financing Agency (CalHFA), www.calhfa.ca.gov/homebuyer/programs/chdap.htm, provides a deferred-payment junior loan of up to 3 percent of the purchase price.

— Wells Fargo East Bay CityLift, www.unitycouncil.org/citylift-main-page-2/L. Down-payment grants of $20,000 are available for about 150 home buyers in nine participating East Bay cities.

— California State Teachers’ Retirement System, www.calstrs.com/home-loan-program. The retirement system is working to restart its down payment assistance program for teachers.

— CHF Platinum www.chfloan.org. Down payment assistance for low- and moderate-income borrowers in California; works only with FHA loans

— WISH (Workforce Initiative Subsidy for Homeownership), www.fhlbsf.com/community/grant/wish.aspx. Federal Home Loan Bank runs through participating banks. Provides 3-to-1 match for down payment funds. Must be used in conjunction with a local down payment assistance program, for instance from a city, county or employer.

— IDEA (Individual Development and Empowerment Account) www.fhlbsf.com/community/grant/idea-profile.aspx. A matching loan for households that participate in a home buyer education and savings management plan.

— Mortgage Credit Certificate (MCC), www.calhfa.ca.gov/homeownership/programs/mcc.pdf. This federal program allows qualifying homeowners to deduct a larger portion of their interest payments from their tax bill. Lenders are willing to account for this in calculating borrowers’ income.

Low-down payment loans

FHA (Federal Housing Administration) and VA (Veterans Affairs) loans are two key sources for people with lower down payments. Counselors recommend a couple of other options for lower-income borrowers that do not require the extra cost of mortgage insurance.

Union Bank Economic Opportunity Mortgage, www.unionbank.com/EOM

— CitiBank HomeRun, www.citibank.com/citimortgage/employee/lowdown.htm

Homes for sale

Neighborhood Stabilization Program, hudnsphelp.info/index.cfm?do=viewGranteeAreaResults The federal NSP program, which gives money to local governments to buy, fix and resell foreclosures, is winding down. This site details local grant recipients, some of which may still have homes for sale.

— Freddie Mac lets home buyers subscribe to lists of its foreclosed homes for sale in their area, www.homebase.homesteps.com

— Fannie Mae has an online database of its foreclosures for sale, www.homepath.com

— Several Bay Area cities offer “below-market-rate” units for sale to lower-income homeowners. Search the city’s name and “below market rate.” San Francisco’s program is at http://sf-moh.org/index.aspx?page=299

— Homes from the self-help program are listed at East Bay Asian Local Development Corporation www.ebaldc.org/ and Community Housing Development Corporation www.chdcnr.com/

Read more: http://www.sfchronicle.com/realestate/article/Resources-for-lower-income-home-buyers-4512719.php#ixzz2TJ1Xx5Rt

I read this article at:  http://www.sfchronicle.com/realestate/article/Resources-for-lower-income-home-buyers-4512719.php

Got Questions? – The Caton Team is here to help.

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Thanks for reading – Sabrina