five 100% financing loans you should know about

Where homeownership education takes flight!

Five 100% Financing Loans You Should Know About

Thank you for attending

We will begin in a momentClass Scheduled to begin at 6:00pm

Presented by

Scott SchangSponsored by

Broadview Mortgage Corporation

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Five 100% Financing LoansTopics We Will Cover In This Class

• Types of 100% Financing Available

• Five 100% Financing Loan Programs

• Community Seconds – Mortgage Credit Certificates

• Getting Approved for Low and No Down Financing

• Wrap Up and Take Aways

• Schedule of Upcoming Classes


Five 100% Financing LoansThe Purpose and Goals of this Class

• To Create and Empower Home Owners

• Educate you about the Specialty Financing Options that allow and provide for 100% financing

• Empower you with the ability to make informed decisions throughout the home buying process

• Introduce you to Broadview Mortgage Corporation as Homeownership Education Experts


Five 100% Financing LoansAsk Questions throughout presentation

• You may type questions in at any time during the presentation – Questions box on your screen

• Homebuyer specialists are standing by to answer your questions during the presentation

• This is an interactive learning environment. You will get the most value by having your specific questions answered

• The only dumb question is the one you don’t ask

Write number down now in case you get disconnected

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Five 100% Financing LoansTypes of 100% Financing Available

• 100% First Mortgage Loans – No other liens– VA Loans– USDA Loans– CalHFA – CSHLP & SMART

• 100% First and Second Mortgages– CalPERS FHA + CalPERS Personal Loan– FHA + Community 2nd – Conventional – Fannie Mae / Freddie Mac + Community 2nd

• City / County / State Assistance Programs– First Time Homebuyer Programs - FTHB– Down Payment Assistance Programs – DPAP / DAP– Mortgage Assistance Programs – MAP

• Typically require specific qualifying requirements


Five 100% Financing Loans100% First Mortgage Loans – No other liens

• VA – Veterans Administration Insured Loans

• CalHFA – California Housing Finance Agency– CSHLP - Community Stabilization Home Loan Program –

Bank Owned Foreclosures

• CalHFA – California Housing Finance Agency– SMART – CalHFA Owned Foreclosure Properties

• USDA – Rural Development Loans


Five 100% Financing LoansVA – Veterans Administration Insured Loans

• 100% Financing One Loan– No Down Payment Required

• No Mortgage Insurance Required

• Funding Fee is Required by Law– Current funding fee is 2.15% - reduced with down payment– Can be financed into loan

• Increased loan limits reinstated under H.R.1 - 2009– Loan limits are determined by County – See link

• Closing costs may be financed in loan up to 102%– No money out of pocket possible – Ask loan officer


Five 100% Financing LoansVA – Veterans Administration Insured Loans

• Active or Inactive Military – Honorable Discharge

• No income or first time home buyer limits

• Up to 4% seller concessions for closing costs

• Rates set by lenders

• Can purchase 1-4 Unit Properties

• Must be Owner Occupied Only


Five 100% Financing LoansCommunity Stabilization Home Loan Program

• CalHFA - California Housing Finance Agency– One of two remaining CalHFA loan programs – See link– May use Conforming 100%, FHA, VA or USDA

• Below market prices offered on select Bank REO– Citi, Fannie Mae, HomeEq Servicing, Premier Asset

• Properties are in lendable condition– Cream of the crop homes only – not distressed homes

• No Down Payment Required– 100% financing– Maximum 103% CLTV – Closing cost assistance

• Minimum Credit Score 680 over 95% LTV– 660 if LTV is under 95%


Five 100% Financing LoansCommunity Stabilization Home Loan Program

• 5.5% - 30 year fixed interest rate

• Special discounted mortgage insurance – .59% monthly mortgage insurance premium– No upfront mortgage insurance premium

• Can use seller concessions to cover closing costs

• Must be a First Time Home Buyer– Can not have owned a home in past 3 years– Exception is if home located in Federally designated

“Targeted LMI Area” – See link

• Borrower must qualify as Low to Moderate Income– LMI varies by number in household and county – See link

• Can use community seconds for down payment


Five 100% Financing Loans

Alameda 94601 94602 94603 9460594606 94607 94608 9460994610 94611 94612 9461894619 94621

Contra Costa All ZIP codes

Los Angeles 90008 9004393535 93550

Merced All ZIP codes

Monterey All ZIP codes

Riverside All ZIP codes

Sacramento All ZIP codes

San Benito All ZIP codes

San Bernardino 92336

San Joaquin All ZIP codes

Stanislaus All ZIP codes

Designated County Eligible Zip Codes

Counties and Zip Codes for CLHLP Homes


Five 100% Financing LoansSMART – CalHFA REO Homes

• CalHFA - California Housing Finance Agency– One of two remaining CalHFA loan programs – See link– May use Conforming 100%, FHA, VA or USDA loans

• Below market prices offered for quick sales

• Properties are in lendable condition– Cream of the crop homes only – not distressed homes

• No Down Payment Required– 100% financing– Maximum 102% CLTV – Closing cost assistance

• Minimum Credit Score 680 over 95% LTV– 660 if LTV is under 95%


Five 100% Financing LoansSMART – CalHFA REO Homes

• 5.5% - 30 year fixed interest rate

• Monthly mortgage insurance required– .96% monthly mortgage insurance premium– No upfront mortgage insurance premium

• Can use seller concessions to cover closing costs

• Must be a First Time Home Buyer– Can not have owned a home in past 3 years– Exception is if home located in Federally designated

“Targeted LMI Area” – See link

• Borrower must qualify as Low to Moderate Income– LMI varies by number in household and county – see link

• Can use community seconds for down payment


Five 100% Financing LoansUSDA – Rural Housing Development Program

• Home must be located in a Rural area– Open country and places with population of 10,000 or less– Under certain conditions, towns and cities with between

10,000 and 25,000 residents may be eligible– Property can not be used as income producing - crops or

livestock

• USDA Rural Development field offices can determine eligible areas – See link

• 100% One loan financing – 2% Guarantee Fee– 102% maximum LTV if Guaranty Fee is financed

• No monthly recurring monthly expense charged for guaranteeing the loan – No mortgage insurance



• No specific credit score requirements– Applicants must have a credit history that indicates a

reasonable ability and willingness to meet obligation as they become due

• Debt to Income Requirements– Housing expenses not to exceed 29% - PITI / Gross

income– Household expenses not to exceed 41%

• Debt to Income Requirement Waiver– Compensating Factors– Credit score of 660 or higher– Cash reserves after close– Similar housing expenditure – low payment shock– Potential for increased earning and career advancement



• Adjusted annual household income can not exceed the moderate income – See link– Total gross income of applicant, co-applicant and any other

adults in the household– Minus certain adjustments such as child care expenses

• 30 Year fixed rate mortgage at market rates

• Must be owner occupied

• Seller may contribute to the buyer’s closing costs

• Loan may include closing costs and guarantee fee if appraised value is higher than sales price


Five 100% Financing LoansCalPERS FHA with CalPERS Personal Loan

• Eligible Borrowers– Active or inactive members of CalPERS, LRS and JRS– Retired and annuitants members, and Tier Two Member

whose contributions are service credits are not eligible for the Personal Loan

• Down Payment Assistance Program– Available to take out for the purposes of contributing to

down payment only – Not closing costs– CalPERS Personal Loan is secured by Member’s

retirement account with a pledge agreement

• Funds are not withdrawn from Member’s account– Pension used as collateral CalPERS Personal Loan

• No lien is placed against the property



• Maximum purchase price $350,000

• Use CalPERS FHA 1st - Maximum 96.5% LTV

• Personal loan up to 5% of value of home

• Up to 50% of Member’s current contribution– Minimum loan is $1,000– Maximum loan is $18,421

• Eligible Properties• Single family residence - Detached• Condominiums - Attached• Planned Urban Development – PUD

• No multi family properties - 2 to 4 units not eligible



• Must be occupied as principle residence

• Personal Loan Type– Personal loan is fixed rate, fully amortized

• Loan Term– Loan term is determined by loan amount

• $1,000 - $1,499 3 Years• $1,500 - $2,999 4 Years• $3,000 - $4,999 5 Years• $5,000 - $9,999 10 Years• -$10,000 - $18,421 15 Years

• Minimum loan term is 1 year / Max is 15 years


Five 100% Financing LoansCommunity Seconds – DPA / DPAP / MAP

• State Offered – California Housing Finance Agency– All down payment assistance temporarily suspended– SMART and CSHLP still available

• Most Counties offer down payment assistance

• Many Cities offer down payment assistance– Those that do not use County programs

• Often very difficult to find information– Search city / county website under departments– Look for housing department or community development

• We have created a site – www.CDPAP.com– www.CaliforniaDownPaymentAssistancePrograms.com– Over 100 currently listed and updated daily


Five 100% Financing LoansCommunity Seconds – DPA / DPAP / MAP

• Common Challenges with Community Seconds– Funds are typically only available at beginning of fiscal year– Funds are limited and exhausted very quickly

• Common Qualification Requirements– First time homebuyer requirement – exceptions are single

parents and divorcee’s – Income limits – % of Area Median Income (AMI) is typical– Purchase price limits

• Common Features of Down Payment Assistance– May require minimum contribution by buyer – 1% common– Usually silent second mortgage – no payments for life– May become Grant and forgiven after period – 15/30 years– Can be in any amount - $1,000 to over $100,000


Five 100% Financing LoansMortgage Credit Certificates - MCC

• A Mortgage Credit Certificate (MCC) entitles qualified home buyers to reduce the amount of their federal income tax liability by an amount equal to a portion of the interest paid during the year on a home mortgage

• This tax credit allows the buyer to qualify more easily for a loan by increasing effective income of the buyer

• The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence

• The MCC is not transferable to a new loan when refinancing, nor can it be assigned or transferred to a new buyer or another home.



• MCC Programs typically include a recapture provision which provides for a return of tax credits taken if the property ceases to be the borrower’s primary residence within recapture period– County of Riverside is 9 years

• The amount of tax recapture is determined by formula, and provided to the borrower at the time the application is taken.

• After expiration of the recapture period, the borrower may dispense of the property without incurring penalty, but would lose the future benefits of the MCC.



• The three basic qualifications are:

• (1) The borrower must be a First Time Home Buyer;

• (2) The borrowers annual income must fall within the program income limits; and

• (3) The home being purchased must fall within the program purchase price limits. – If the home is located in a Target Area, then the first-time

buyer limitation does not apply and the income and cost limits are higher.


Five 100% Financing LoansGetting Approved for Low and No Down Financing

• Some programs require you “belong” to qualify– Public Employees Retirement System / Veteran Admin

• May have to purchase certain homes in certain areas– USDA - Must be in Rural area– CSHLP / SMART - Only specific properties available

• May have to meet certain qualifying guidelines– Specific debt to income ratios– Minimum credit scores– Income limitations– First time homebuyer restrictions

• Must be approved for purchase loan first – Community seconds– Mortgage credit certificates


Five 100% Financing LoansGetting Approved for Low and No Down Financing

• Many of these programs require lender be approved to offer such programs – Not all lenders qualify– FHA / VA / USDA / CalHFA / CalPERS / CalSTRS– Community seconds and MCC may require lender approval

• Get approved for purchase loan financing FIRST – All loan programs require that you qualify for a loan– We will research all applicable loan options available to you– You may qualify for more than one option – compare– We will also research down payment assistance options

available to you based on approval

Broadview Mortgage is an Approved LenderApply on-line or over the phone in minutes


Five 100% Financing LoansWrap up and Take Aways

• We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA, Community seconds programs, MCC programs and homeownership education

• We are more than happy to be your “second opinion” if you are already working with someone

• We are more than happy to refer you to a qualified Real Estate Agent that shares our values for education and empowerment

• We are committed to educating and empowering homeowners - Join us for future classes


Five 100% Financing LoansWrap up and Take Aways

• You will receive a “Thank you” email with links to the information we’ve talked about here today including

– Copy of power point presentation– Secure on-line loan application– Links to all the topics we discussed in class– Dream Home Finder request– Link to more information about Tax Credit– A schedule of all upcoming classes


Upcoming Homebuyer Classes• A First Time Home buyer’s Complete Guide to Credit,

Qualifying and Completing the Loan Application

• A Complete Guide to Buying Foreclosures and Short Sales

• A Complete Guide to Closing Costs and the Good Faith Estimate

• A Complete Guide to the CalPERS Home Loan Program

• A Complete Guide to CalSTRS Home Purchase Loan

• A Complete Guide to FHA Purchase Loans

• Working to record and archive all classes for viewing anytime – I will keep you updated

Check back often for upcoming classes


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For more information

1-866-667-6724Presented by

Scott SchangSponsored by

Broadview Mortgage Corporation