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PURCHASE & REHAB LOAN:
Q: How much can I borrow?
A: Up to 120% of the after-rehab value of the house. The ability to borrow more than the value of the house is unique to Healthy Neighborhoods.
Q: What is the interest rate?
A: A fixed rate of the 60-day Fannie Mae rate minus 100 basis points (1 percentage point) but never less than 4%.
Q: What is the term?
A: 30 years.
Q: Is there a downpayment required?
A: Borrowers buying a home must contribute 3% of the purchase price from their own funds.
Q: What extra costs and charges apply?
Q: Is there a downpayment required?
A: Borrowers buying a home must contribute 3% of the purchase price from their own funds.
Q: What extra costs and charges apply?
A: The neighborhood association may charge a small application fee and the bank will charge a fee to cover the costs of a credit report and appraisal. In addition, standard closing costs and a 2 point (2% of the loan principal) origination fee apply. Once the borrower meets the 3% down payment requirement, they may finance closing costs into the loan as long as income to debt ratios do not exceed the 30% and 40% program requirements.
Q: What are the credit requirements?
Q: What are the credit requirements?
A: There is a minimum 620 credit score required and you must have a reasonably good credit history.
Q: What is the minimum amount of renovation work required?
Q: What is the minimum amount of renovation work required?
A: For houses with a sales price below $170,000, a minimum of $5,000 is required and should include exterior improvements to the property. If the house has a sales price above $170,000, at least 10% of the purchase price is required in improvements of the property and also must include some exterior work. For houses with a sales price above $200,000, a minimum of $20,000 is required and should include exterior improvements to the property.
REFINANCE & REHAB LOAN:
Q: How much can I borrow?
A: Up to 120% of the after-rehab value of the house. The ability to borrow more than the value of the house is unique to Healthy Neighborhoods.
Q: What is the interest rate?
Q: What is the interest rate?
A: A fixed rate of the 60-day Fannie Mae rate minus 100 basis points (1 percentage point) but never less than 4%.
Q: What is the term?
Q: What is the term?
A: 30 years.
Q: Is there a downpayment required?
A: No.
Q: What extra costs and charges apply?
Q: Is there a downpayment required?
A: No.
Q: What extra costs and charges apply?
A: The neighborhood association may charge a small application fee and the bank will charge a fee to cover the costs of a credit report and appraisal. In addition, standard closing costs and a 2 point (2% of the loan principal) origination fee apply. Closing costs may be financed into the loan as long as the borrower's income to debt ratios do not exceed the 30% and 40% program requirements.
Q: What are the credit requirements?
Q: What are the credit requirements?
A: There is a minimum 620 credit score and you must have a reasonably good credit history.
Q: What is the minimum amount of renovation work required?
Q: What is the minimum amount of renovation work required?
A: For houses with a mortgage balance below $170,000, a minimum of $5,000 is required and should include exterior improvements to the property. If the house with a mortgage balance above $170,000, at least 20% of the purchase price is required in improvements of the property and also must include some exterior work. For houses with a mortgage balance above $200,000, a minimum of $20,000 is required and should include exterior improvements to the property.
HOME IMPROVEMENT LOANS:
Q: How much can I borrow?
A: Between $5,000 and $40,000.
Q: What is the interest rate?
A: A fixed rate of the prime rate minus 100 basis points (1 percentage point) but never less than 4%.
Q: What is the term?
A: 10 years.
Q: What are the extra costs and charges?
A: The neighborhood association may charge a small application fee and the bank will charge a fee to cover the costs of a credit report and appraisal. Standard recordation and closing costs apply.
Q: What are the credit requirements?
A: There is a minimum 620 credit score and you must have a reasonably good credit history.
