Buy Almost 30% More With AMB

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With all of the chatter around the mortgage regulators making it tougher for buyers to qualify for financing, it’s good to know that there are plenty of programs out there that empower home buyers to stretch their qualifications.  As you’ve read, Qualified Mortgages (QM) have restrictions like 30-year terms and lower debt-to-income ratio requirements.  However, there are programs out there that have 40-year terms, lower qualifying rates and higher debt-to-income allowances.  Those programs allow for almost 30% greater purchasing power than the QM mortgages. 

For example, let’s say you have a client who makes $200,000 per year.  With a QM mortgage and using a 5/1 ARM program, the client qualifies for a $1,200,000 purchase.  However, using the same 5/1 ARM program with a 40-year term, the client can move up to a $1,550,000 home!*  In this environment with a surplus of buyers and a shortage of sellers, these more aggressive mortgage financing solutions may make the difference between searching for homes and buying a home.

For a comprehensive review of what financing solution works best for you or your clients, please contact your favorite Absolute Mortgage Advisor or visit us at www.absolutemortgage.com for more information.

*This example presumes 20% down, great credit, using a 3% note rate.

Equal Housing Lender Icon©2014 Opes Advisors, Inc., doing business as Absolute Mortgage Banking.  Licensed by the CA Bureau of Real Estate, 01458652 and NMLS 235584.  Equal Opportunity Lender. All rights reserved.

A Daisy of a Down Payment Assistance Program

DaisyWith mortgage interest rates continuing to be attractive, home affordability is still high and there are some GREAT first time home buyer programs out there. One of our favorite programs is called the Daisy, which gives qualified buyers up to $15,000 in cash toward down payment and closing costs at NO cost to the borrower!* Some of the details around this program include:

  • Loan amount cannot exceed $400,000
  • Of the $15,000 allowance, $7,500 must be for down payment with the other $7,500 for closing costs
  • First mortgage must be approved through an approved lender (like AMB)
  • The borrower’s income cannot exceed $120% Area Median Income, adjusted for family size
  • Prior to closing, the borrower must attend homebuyer or landlord (for those buying multi-unit properties) education sessions conducted by a HUD approved counseling agency
  • Eligible properties include single family, condo’s, PUD’s and 2-4 unit properties

The Daisy program is available to properties located in the following counties: Alameda, Contra Costa, Los Angeles, Marin, Orange, Riverside, San Bernardino, San Diego, San Francisco, San Mateo, Santa Barbara, Santa Clara, Sonoma and Ventura counties.
For a comprehensive review of what financing solution works best for you or your clients, please contact your favorite Absolute Mortgage Advisor or visit us at http://absolutemortgage.com/ for more information.

*The prorated balance due is repayable if the property is sold, refinanced, not owner-occupied as the primary residence or transfers title within the first 36 months. A rate & term, no cash-out refinance on the first mortgage is expected from prorated balance repayment. Please contact your Absolute Mortgage Banking Mortgage Advisor for specific information. Program subject to modification or cancellation at any time.

Equal Housing Lender Icon©2014 Opes Advisors, Inc., doing business as Absolute Mortgage Banking. Licensed by the CA Bureau of Real Estate, 01458652 and NMLS 235584. Equal Opportunity Lender. All rights reserved.