Wednesday, April 18, 2012

BB&T's 100% Financing, No PMI Loan... "CHIP" or Community Homeownership Incentive Program

BB&T's 100% Financing, No PMI Loan... "CHIP" or Community Homeownership Incentive Program

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.
  1. Loan amounts up to $417,000.00
  2. 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%.
  3. Home Buyer Education: Required
  4. Can use approved down payment assistance program or qualified gift
  5. Property: Single family residence, townhouse or condo
  6. Minimum buyer contribution: $500.00
  7. Reserves: 97% financing - one month PITI, 100% financing - two months PITI
  8. 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 
  • Then go to Freddie Mac's Under served Census Tract List (about halfway down this page)    
   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.

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