1% Loan Program With A 2% Gift From Lender:

1%  loan program with a 2% gift of equity from lender is a brand new Conventional loan program.  To qualify borrowers need a middle fico score of 700.  You can not own any properties.  However, you can be a previous home owner.  You will need to take an online first time home buyer counseling class with the lenders even if you are not a first time homebuyer.  There are income restrictions based on your county code.  This program is offered in Arizona and in the state of California.

Income Eligibility

Arizona – BY COUNTY
COUNTIES INCOME ELIGIBILITY
Apache 44,000
Cochise 58,400
Coconino 61,300
Gila 50,200
Graham 51,900
Greenlee 49,300
La Paz 44,000
Maricopa 62,900
Mohave 50,100
Navajo 44,000
Pima 56,700
Pinal 62,900
Santa Cruz 44,000
Yavapai 52,200
Yuma 45,800

Turn times on this program are 35-40 days.  There is no second mortgage on this program.  The lender is gifting the client their 2% down in exchange for a higher rate.  This program does contain mortgage insurance until your loan to value ratio hits 78%. Borrowers need to be continuously employed for the last two years along with two years of filed tax returns. There are no exceptions. If a spouse is not on the loan, then you do not need to count their debt.  The interest rate is a little bit higher than a 5% down conventional loan program so don’t expect the same low rate.  Rates work like this:  The more you put down, the higher the fico score, and the the higher the loan amount, the lower the interest rate.  Smaller loan amounts tend to have a higher rate. Why?  No one knows.  It’s just the way the lenders have always priced out the loans.

When applying, borrowers need to make sure they have filed their last two years tax returns.  If you file an extension, we will need a copy of that letter.

To obtain more information on this brand new & exciting loan program, call our office directy to speak to a license loan officer.

Article 1:  1% down loan program

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