Patricia Saenz's (psaenz9996) Blog

BB&T's 100% Financing, No PMI Loan... "CHIP" or Community Homeownership Incentive Program Since the mortgage crisis started in the Spring of 2008, 100% financing loan programs have become few and far between. Here are a few details of a relatively new program that BB&T is offering, it seems like a great program for qualifying buyers. The program is called Community Homeownership Incentive Program or "CHIP" for short. Qualifying buyers can get up to 100% financing (NO MONEY DOWN) with NO PMI (Private Mortgage Insurance). Loan amounts up to $417,000.00 Maximum income limits: 97% financing - $66,500.00, 100% financing - $53,200.00 household income. No income limits in HUD designated underserved areas. HUD designated underserved areas can be Ratios: 33% housing, 41% total debt. Can go up to 45% with 720 credit score and no other debt Term: 30 year fixed only Homebuyer Education: Required Can use approved down payment assistance program or qualified gift Property: Single family residence, townhouse or condo Minimum buyer contribution: $500.00 Reserves: 97% financing - one month PITI, 100% financing - two months PITI To determine if a property is located in a HUD designated underserved area, which eliminates the income limit for this program, take the following steps: Enter the property address here to get the census tract http://www.ffiec.gov/Geocode/default.aspx Then go to Freddie Mac's Underserved Census Tract List (about halfway down this page) http://ww3.freddiemac.com/ds2/sell/affgold.nsf/frmStateOpenForm&State=Virginia. Buyer Credit Qualifications: No 30 day delinquencies within the past 12 months. Derogatory credit must be explained. Collections may not have to be paid, but judgments must be paid off. Student loan payments will not be counted in debt as long as payment will be deferred at least 36 months from loan closing. For 100% financing, minimum credit score must be 660. No minimum for 97%. Non-traditional credit sources can be utilized. Must be opened and maintained for 12 months. Minimum number is three sources of non-traditional credit. Of course... Loans are subject to approval & this loan program can be modified or discontinued at anytime without notice. Contact me anytime for more information about this program and for all of your real estate needs. I look forward to helping you find your new home!