Program offers hope for low/moderate-income buyers BOSTON – Jan. 16, 2015 – The new Wealth Building Home Loan – funded by Bank of America and Citi Mortgage, and administered by the nonprofit Neighborhood Assistance Corp. of America (NACA) – requires no downpayment, no closing costs and no credit score check. The 15-year product aims to help low- and moderate-income buyers overcome the strict lending requirements that have kept them from achieving homeownership and enable them to create wealth over the long term. They can lower their monthly payment to an amount equivalent to a 30-year mortgage by using their own savings, seller-provided funds, gift money, or funds from government sources to buy down the interest rate. However, its not easy to jump through all the hoops required by the new loan, and many borrowers find it difficult and time-consuming to obtain approval. The process requires a full documentation of income, assets and debt – budget and bank statements for the last three to six months, payment history and cash flow for the last 12 to 24 months, and proof of income stability. Moreover, some real estate professionals have reported problems with the NACA process, saying NACA disregarded deadlines in the contract for the home inspection and appraisal, among other snags. But NACAs chief executive, Bruce Marks, says that requests from bank underwriters for additional information can cause delays. The underwriting of our loans is flexible and character-based, Marks says. We do not review an applicants credit score, but rather we look at their individual circumstances. For example, we would not penalize borrowers for late payments on unaffordable but necessary medical expenses. Source: Washington Post (01/14/15) Chodorov, Jill © Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688 Related Topics: Mortgages, Workforce housing
Posted on: Fri, 23 Jan 2015 19:33:41 +0000
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