Just a few week ago I had an agent open house at one of our new listing. David Boulware (803-251-1227) attended on behalf of BB&T (also provided lunch; THANK YOU.) Although I had heard about the Chip Program I really didn't know the details. Thanks to David I now have a fairly good understanding of the Chip Program works.
The program is called Community Homeownership Incentive Program or "CHIP" for short. Qualifying buyers can get up to 100% financing (NO MONEY DOWN) with NO PMI (Private Mortgage Insurance). Here are a few details of a program that BB&T is offering, it seems like a great program for qualifying buyers.
- Loan amounts up to $417,000.00
- 100% county median and 97% LTV/80% county median and 100% LTV; LTV is5% less in a declining market, and10% less in a severely declining market. For properties located in a under served area 120% of the HUD medium income limit for LTV's < 97% or 80% of the HUD median income limit for LTVs > 97%.
- Home Buyer Education: Required
- Can use approved down payment assistance program or qualified gift
- Property: Single family residence, townhouse or condo
- Minimum buyer contribution: $500.00
- Reserves: 97% financing - one month PITI, 100% financing - two months PITI
- To determine if a property is located in a HUD designated under served area, which eliminates the income limit for this program, take the following steps:
- Enter the property address here to get the census tract http://www.ffiec.gov/Geocode/default.aspx
- Then go to Freddie Mac's Under served Census Tract List (about halfway down this page)http://ww3.freddiemac.com/ds2/sell/affgold.nsf/frmStateOpenForm&State=NORTH+CAROLINA#0420.00
9. Buyer Cred Qualifications
- No 30 day delinquencies within the past 12 months. Derogatory credit must be explained. Collections may not have to be paid, but judgments must be paid off.
- Student loan payments will not be counted in debt as long as payment will be deferred at least 36 months from loan closing.
- For 100% financing, minimum credit score must be 660. No minimum for 97%.
- Non-traditional credit sources can be utilized. Must be opened and maintained for 12 months. Minimum number is three sources of non-traditional credit.
Of course... Loans are subject to approval & this loan program can be modified or discontinued at anytime without notice.