These two new loan programs can be your ticket to homeownership.
Today, I am here to share two exciting loan programs that might be suitable for your home-buying plans.
The first program is for current homeowners who want to pull out equity from their homes. Home equity lines of credit have been challenging to find lately, and many have high-interest rates. However, Comerica Bank is currently offering a home equity flex line of credit with a low introductory rate of 5.49% for the first six months, and a variable rate as low as 8.25% after that, with no annual fee. This loan is interest-only for the first 10 years, making it a great option for those interested in a home remodel or investment. Keep in mind that this is a special run and is only until mid-April.
The second program I want to talk about is the California Dream for All. This loan offers first-time buyers a 20% down payment to help purchase a home. California has made $300 million available for this program, but the funds will go quickly. If you lock in a loan, the funds will be secured for you. This is a conventional loan with no down payment requirement or private mortgage insurance, resulting in lower monthly payments and increased purchasing power.
To qualify for this program, you cannot have owned a property in the last three years, and your minimum credit score must be 680. The maximum debt-to-income ratio is 45%, although this can increase to 50% for those with a 700 FICO score. The property must be a single-family home or condo, and your income cannot exceed the county income limit, which is $180,000 for both L.A. and Orange County. A CalHFA homebuyer education course is also required, as well as a one-year home warranty.
“The California Dream for All is a conventional loan with no down payment requirement.”
However, there is a catch to this program: shared appreciation. CalHFA is entitled to 15% to 20% of the appreciation gained from the purchase date, depending on the buyer’s income. Buyers with incomes between 80% and 150% of their county’s median income must pay 20% of the appreciation gained, while those with incomes less than 80% only have to pay 15%. There is a one-time refinance option available after 13 months, and the loan can be placed in the second position if necessary.
This is a lot of information. If you have any questions about these loan programs or know someone who would benefit from them, feel free to call or email me so I may assist you in your buying and selling plans.