I am sure we are all getting more familiar with the MSHDA product line, but here are a few misconceptions that I have been helipng my clients break.
I just had a client who had sold their previous home and was moving to a new area and had 20% to put down on the purchase of a new home. Both the borrowers worked. They thought there was now way that MSHDA would help them. Well if you take a closer look if you buy in a targeted area prior home ownership doesn't matter. Even though both clients worked they also had 1 child and in that area that meant the income limit was $84k a year. Again a nice solid middle class couple with money to put down that without my attention would be paying way too much for the loan. They are now able to obtain fixed rate financing for nearly 1% below the market rate.
- allows a purchase price up to $224,500
- in most areas if you have children you can make up to $85,000 a year
- you can use outside downpayment assistance companies to get into a home with 0 money out of pocket
- You can be putting a substantial amount of money down
- There are credit score adjusters so the savings are even more substantial for credit scores under 720
Want to find a list of the targeted area and income limts well try this link http://www.myfavoritebanker.com/MSHDAHomeLoans
You will be suprised at how many clients can fit into this program and dramatically reduce their house payments and interest rate.
Why don't more people know well I think a lot of lenders shy away from the additional paperwork or aren't approved to do MSHDA loan.
I also think many Realtors have far more concern than is necesary about MSHDA running out of funds and the additional time alotment for the MSHDA process.
Currently MSHDA rates are at 5.625% yes there is a 1% origination fee with MSHDA loans, but the interest savings pays for that in about 2 years.