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HUD to Allow Down Payment Assitance Program to Continue | Plainfield Real Estate

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HUD TO ALLOW DOWN PAYMENT ASSISTANCE PROGRAM TO CONTINUE


Chairman of the House Financial Services Committee, Barney Frank, has negotiated an agreement with HUD Secretary, Steve Preston, that will allow the continuation of the privately funded down payment assistance programs.

It allows HUD to use risk-based pricing on the down payment assistance transactions. The agreement still needs to be approved by Congress and the President. It is covered by HR 6694.
The agreed upon changes in HR 6694 are:

  • Allow down payment assistance for a mortgage where the mortgagor has a credit score equivalent to a           FICO score of 680 or greater.
  • Allows down payment assistance where the mortgagor has a credit score equivalent to a FICO score of 620 to 679 and the mortgage insurance premium charged would be based upon the score and risk involved.

 

Risk Base Pricing is the practice of offering individuals with good credit a less expensive loan or a lower interest rate than to others who are credit impaired and have a lower credit score.  It is a good idea to put your financial house in order now, before you decided to purchase a house in the future.  A higher credit score could save thousands over the life of the loan.  For some it could change the loan process from a denial to an approval for a loan.

 

For credit repair go to: www.htdimortgage.net/zagreb

 
Dan Garcia
Excel Mortgage, Inc.
Mortgage Consultant
Residential / Commercial
815-886-9024 Office
815-886-3778 Fax


http://www.chicagorealestateplainfieldhomes.com/00443C

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julie.ferenzi

more Posted by julie.ferenzi : This post has 249 views  and was posted on September 22, 2008 23:07:31   
Posted in Mortgages, Buyers

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more Julie Ferenzi, Realtor

Julie Ferenzi, Chicago Realtor I am a veteran real estate agent serving the Chicago communities of Chicagoland, Plainfield, Joliet, Romoeville and Naperville. I specialize in helping my Chicago neighbors buy and sell their suburban luxury homes.

Phone: 630.673.6233

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