Broadview Mortgage Corporation specializes in the First Time home buyer and other low down payment programs that enable many families to obtain home ownership that they otherwise would not be able to achieve. Over the years, Broadview Mortgage Corporation has enrolled in many programs that offer such options and has developed the expertise that only few mortgage bankers have achieved. These programs include the following:
97% Loans offered by Government Sponsored Agencies (GSA’s) Federal National Mortgage Company (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) are quasi-sponsored governmental agencies that were formed to provide conventional loans for home ownership. Typically, because the borrowing capacity of these agencies are backed by the “full faith of the government”, the loans (known as conforming loans) purchased by the organizations have lower interest rates than loans provided by other sources (non-conforming loans). In addition, these organizations are mandated to help prospective homeowners obtain favorable financing that they might not otherwise have access to. Hence, several programs have been developed where first time homebuyer only need a 3% down payment, which can in some cases be borrowed from immediate family members or charitable organizations. In addition, these programs require less cash reserves (normally 2 months payments in savings) and higher qualifications ratios.
Federal Housing Administration (FHA)
The Federal Housing Administration (FHA) was formed in 1934 to provide low down payment loans to borrowers that were not able to get financing from the more traditional sources of the time (Banks and Savings and Loan Institutions). FHA provides loans with as little as 3% down (which can be a gift from an immediate relative). In addition, FHA will accept applicants where the incomes do not cover as much of the housing expense that conventional loans might require. Additionally, FHA will accept credit problems that if given a bone fide reason, the traditional lenders would likely reject. Broadview Mortgage Corporation has had “FHA Delegated Underwriting’ status with FHA since 1991. FHA loans include Fixed Rate Mortgages, Adjustable Rate Mortgages, and Fixed Rate Buydown Mortgages.
Veterans Administration (VA)
For qualified veterans of the armed forces, the Veterans Administration provides loan guarantees to lenders to make not down payment loans for Veteran buyers. A VA loan allows for closing costs to be paid for by the seller which results in a VA "no-no", where no funds are needed by the buyer to close the transaction. Broadview Mortgage Corporation is an approved direct lender as well as an "automatic underwriter" and "appraisal reviewer" for the Veterans Administration since 1993.
California Housing Finance Agency (CalHFA)
The California Housing Finance Agency (CalHFA) is designed to provide up to 100% of the home loan financing to prospective eligible first-time homebuyers at below market rates. It generally consists of a standard 97% FHA fixed rate 30 year mortgage and a 3% CalHFA down payment assistance second mortgage, which is also called a "sleeping" or "silent" second. The second mortgage is offered for 30 years at 3% simple interest. All payments are deferred on this second mortgage until one of the following happens: the CalHFA first mortgage becomes due and payable, the first mortgage is paid in full or refinanced, or the property is sold
In order to qualify for a CalHFA loan, certain eligibility requirements must by met. They are:
· Have an annual household/family income that does not exceed income limits for the family size and county in which the home is located.
· Property must be owner occupied for the term of the loan or until sold.
· Meet credit, income and loan requirements of the CalHFA lender and the private mortgage insurer.
· Be a first time homebuyer, which is defined as a person(s) who has not had an ownership interest in a primary residence during the previous three years. This requirement is waived if property is located in a federally designated Target Area.
· Have the legal right to permanently reside in the United States.
Mortgage Credit Certificate
From time to time, California cities and counties will offer qualified applicants, a credit (as opposed to an itemized deduction) from the borrower's tax return in future years. This benefit can be used as credit against housing debt when qualifying a borrower.
Mortgage Assistance Programs Offered by Municipalities and Counties
Several cities in California periodically offer first time home buyers that buy in their communities Mortgage Assistance Programs (MAP) which assist in providing down payment to complete the purchase of the home. These generally come in the form of a second trust deed placed on the property at the time of closing. The terms of the second trust deed varies by city, but generally come in the form of below market rates and/or "silent" payments. Broadview Mortgage Corporation is approved and participates in many of these city programs.
The National Homebuyers Fund offers a CHF Platinum loan that offers a 3% grant to the borrower. The grant does NOT need to be repaid and can be used to cover closing costs or help with the down payment. This program is available to First Time Homebuyers but is not exclusive to First Time buyers.To the top