BUY A HOME WITH 1 % DOWN PAYMENT!
Yes it is true. Even in today’s market with tightened lender guidelines there is still a great opportunity to buy a home with 1% down payment or cash reserves. If you are a first time homebuyer or have not owned a home in the last three years and you plan to purchase in Virginia, you may be eligible to purchase a home with FHA Plus through Virginia Housing Development Authority also known as VHDA. This great program is a FHA thirty year fixed loan designed to assist qualified borrowers who need down payment and some closing costs assistance. The loan program does have income limitations but many buyers are able to qualify. For a family of two or less the maximum household income is $86,900 in the Washington metro area.
Buyers are able to finance 5% of the sale price on a second mortgage at the same low interest rate as their FHA insured loan. For example borrower Sue has decent credit at 620 middle score, has been renting a home for several years, has stable employment, but has not had a chance to save for a down payment. Sue’s annual income plus child support is $56,000. She currently is paying $1,200 for rent. Sue has her eye on a nice town home for $150,000. FHA Plus will allow Sue to own this home for $1,166 per month total. Actually less than her rent! Because, Sue was able to finance her down payment and the seller assisted with the closing costs her out of pocket expense was less than first month’s rent and security deposit for most rental properties and apartments.
So, if you are on the fence about buying a home. Or you are tired of renting and losing out on the tax breaks associated with owning a home. Pick up the phone and give me a call to see if FHA PLUS will work for you. You will be glad you did especially with the $8,000 tax credit being offered to buyers through the New Stimulus Act. For more information about the home buying process and more visit, www.QueenofMortgages.com or call Markita Aldridge-Woods at (703) 497-3936.
