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Monday Morning Mortgages>
Monday Morning Mortgages
January 19, 2010
FICO Scores
Today’s minimum FICO for lending is 620. If using conventional financing (non-FHA) there are “risk-based adjustments” that add rate costs on based on FICO and LTV. FHA also has slight pricing adjustments. Here is a chart of sample rates with various FICO scores. If you have new clients that need credit navigation, I can help them create and keep on track with a credit improvement plan; no cost counseling.
Conventional Adjustments for 80% LTV financing
FICO 740 680 620
Rate 5.0% 5.25% 5.625%
FHA Adjustments for 96.5% LTV financing
FICO 720 660 620
Rate 5.0% 5.125% 5.25%
Santa Rosa American Dream Downpayment Initiative
The city’s Economic Development and Housing Department still has a few housing grants for moderate income first time homebuyers to fund downpayment or closing costs up to $10k available on a first close, first serve basis. Clients should be pre-approved for the program through their loan broker prior to home shopping.
Loans are available for down payment assistance for the following unit types located within the city limits of Santa Rosa, California.
• Single family home;
• Condominium unit;
• Cooperative unit;
• Unit in a mutual housing project; or
• Manufactured home – must be located on land that is owned by the manufactured unit owner,or on land for which the manufactured housing unit owner has a lease for a period at least equal to the term of the loan.
The maximum allowed purchase price is $344,650. Interest at a rate of three percent (3%) per annum will begin accruing from the date of note. Payments are deferred for the term of the loan, but are due upon sale.
Eligible applicants must meet the following requirements:
• Be a first time homebuyer;
• Remain the owner/occupant of the property for the period of 10 years, or until the loan is paid off, whichever first occurs; and
• Be a low-income household.
The maximum qualifying incomes are identified below:
1 Person $ 44,800
2 Persons $ 51,200
3 Persons $ 57,600
4 Persons $ 64,000
5 Persons $ 69,100
6 Persons $ 74,250
Great program. Website for more info: http://ci.santa-rosa.ca.us/departments/economicdev/housing/buyers/Pages/payment.aspx
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