The 80-15-5 loan is back!
For those of you who remember it, the 80/15/5 is back! This is an excellent loan option for a buyer with only 5% down – enabling them to avoid mortgage insurance. Check out the details in part of Eric Dunlap’s recent blog post. He shares a few tidbits in lending news…
I have three exciting announcements about loans for 2012. We are now able to offer 100% financing for clients that qualify for DAPs or Down payment Assistance Programs. We also recently got approval to accept seller carry seconds for the first time in almost 4 years! We can now go to an 80% LTV on the mortgage loan, with up to a 15% seller carry. The borrower has to put in at least 5% of their own funds for a transaction of this type. Lastly, the MCC (Mortgage Credit Certificate) program just received full funding for 2012. If you are not familiar with this first time buyer program, here are the highlights and the qualification criterion:
Highlights:
1) Through the MCC program, borrowers are able to take a direct tax credit for 20% of the interest they pay each year. So, on a $250k purchase with 3.5% down payment on an FHA loan, that corresponds to a monthly savings of approximately $150.
2) Client still gets to deduct from their taxable income the remaining 80% of the interest they pay each year.
3) This savings repeats every year as long as they keep the same loan on the property and live in the property as their primary residence.
Qualification:
1) Must be a first time home buyer (meaning they have not taken a mortgage interest deduction on their past 3 year’s tax returns)
2) Must buy within the City Limits of Portland
3) Must make under $72,000 for a family of 1-2 or $82,800 for a family of 3 or more)
If you have any clients that may meet these guidelines, please have them give me a call!
Thanks,
Eric Dunlap NMLS#169062
Dunlap Mortgage NMLS#169052
1717 NE 42nd Ave #0300
Portland, OR 97213
503-546-0460
Fax: 888-831-1332
Email: Eric@DunlapMortgage.com
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