Real Estate Questions Answered Here
by Art Santellen, REALTOR®
NOTICE: The County of El Paso has issued their annual Bond program to help first time homebuyers with the purchase of a home. You can get a home loan for 6.75% AND a 3.5% (of the purchase price) as a grant to help you with your down payment and closing costs. You can use your VA benefits, obtain a FHA loan, or a conventional loan from any of three mortgage lenders in town: Countrywide Mortgage, Peoples Mortgage, and Wells Fargo Home Mortgage. These are the ONLY lenders in El Paso County authorized to offer El Paso County Bond Program loans.
There are several rules and conditions to getting this money. One, that you are a first-time homebuyer. Two, that you earn LESS than $79,500. Three, that you buy a home less than $190,000. There are other conditions and you'll want to talk to one of these three lenders for specifics. Oh, yes, I'm one of the loan officers certified to help people with these loans. Give me or one of the other lenders a call today.
Q: I am a disabled female. How could I qualify for a home loan on a disability pension? My check is only $701 a month. Is there a program or help out there for the disabled?
A: Yes. In fact, there are several programs.
CHFA has a special program for families receiving disability income which offers an extremely low interest rate (about 3%). In addition, CHFA offers a $10,000 2nd mortgage payable over 30 years at 1.5% (about $35 per month) to help with the down payment and closing costs. You will need at least $750 of your own money to buy a home using this loan program.
Wells Fargo Home Mortgage also has a special loan program called, "DCHAMP". This program allows you to purchase a home with higher than typical debt-to-income ratios (45%). Sellers are encouraged to help buyers with down payment and closing costs. Theoretically, you could buy a home with no money out of your pocket using this loan program.
Using the information you provided in your email, I have discovered the following options for you.
First, the CHFA Home Access Program. Assuming no monthly debt payments, you could get a home loan for $51,500. Your monthly payment (principal, interest, and FHA mortgage insurance) would be $244. If you decided to get that $10,000 2nd mortgage, you have two checks totaling $61,500 to buy a home. Taxes and property insurance or homeowner's association fees would affect the total amount of your loan.
Second, the Wells Fargo DCHAMP loan (with the same assumptions) would mean a loan amount of $58,000. Monthly principal and interest payment would equal $379.
Third, ordinarily you can't stack two programs together. However, using DCHAMP its possible to ask the Rocky Mountain Community Land Trust for additional assistance. So, you get a loan from Wells Fargo Home Mortgage for $58,000 and the land trust adds another $25,000 (under special circumstances, even up to $35,000). That means you'd be shopping for a home in the $74,000 to $76,000 price range. Again, you'll want to remember that taxes, insurance, and homeowner association fees will affect this amount.
As you can see, there is light at the end of the tunnel and its not always a train. You'll want to talk to an experienced loan officer who works for a company that is authorized to make CHFA and/or Rocky Mountain Community Land Trust loans.
Finally, if you've been able to save a little money, that'll help also.
Art Santellen is a licensed real estate professional with Intrepid Realty in Colorado Springs.
News Flash: Art is also a Home Mortgage Consultant with Wells Fargo Home Mortgage!! If you have a question you'd like answered, please send them to Art care of Hispania News PO Box 15116, Colorado Springs, CO 80935. You may also send your question directly at Art via email at ASantellen@hotmail.com. Or call him at his Wells Fargo Office: (719) 381-1114.