Cool Fact #1: Available for any home in Prince George’s County…it is not limited to foreclosures or short sales…any house in the County is eligible.
Cool Fact #2: That also means, of course, that there are none of those annoying zip code restrictions, like last year…any house in the County is OK
Cool Fact #3: They will give you up to 5% of the sales price to assist with down-payment and closing…on a $220,000 house, that’s $11,000…and that $11,000 is more money than you get from any other program that’s out there right now
Cool Fact #4: You can use this program with a streamline 203(k)…in other words…if the repair costs are under $35,000 you can combine this program with a “k”
Cool Fact #5: they are ready to roll next Monday, 2/28/2011
Cool Fact #6: if they get a complete package from a lender, they will turn around their review of that package in 21 days…that is a big improvement over last year…but…it’s up to your lender to get them a complete package…and, that 21-day ticker does not start until they receive a package that is fully approved
That’s the cool stuff…here’s the rest:
I have attached the income limits…they are the same as the other programs…keep in mind that those income limits are based on family size…not just the number of people on the loan. Where you can get snagged is if Mrs. Jones buy on her own because her husband’s credit is a mess…we will only use her income to qualify for the loan…but they will add-in his income to see if they are eligible for the program.
It is limited to first-time buyers or anyone who has not owned a home in the 3 years preceding the ratification date of the contract.
The County will order their own home inspection right after loan application…the County pays for it…but the buyer will still need to get their own inspection.
The one place it gets a little tricky is this: how much cash the buyer needs to put into the transaction. They need to put a minimum of 1.75% of the sales price into the transaction…using that earlier example of a $220,000 property, that is $3,850…but, if the buyer has a lot of money in the bank, that 1.75% figure goes away and they will have to put-out 50% of whatever they show in the bank, above $3,000.00. For instance, if they show $17,000 in the bank, that is $14,000 above $3,000 and they have to put-up half of that $14,000 into the transaction…that person would need to put at least $7,000 into the transaction…so…to make it simple…this program won’t really work well for someone with a lot of money already in the bank.
The other tricky, difficult piece is this: if it is a short sale, they want a copy of the bank approval in the package before they will review it…that 21-day ticker will not start if there’s no bank approval of the short sale in the package that the lender gives them.
They have a strict debt-to-income ratio of 43%... a debt-to-income ratio of 43.10 won’t work
Right now, they only have $1.1 million in funds…that’s probably only enough for 150 loans or so, so you do need to move quickly. If that money is used-up quickly, there may be as much as an additional $2 million provided to them
My Home Income Limits
Free list of PG County Foreclosures
Dick Harbin, Sr. Loan Officer
Office: 301-850-1092
Cell: 202-538-0202
E-fax: 301-294-1420
email: harbo71@aol.com
For over 32 years, Dick Harbin has helped buyers find their way HOME!
Courtesy post from Dick Hardin, Monarch Mortgage
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