The Family Mortgage Team is proud to be able to offer an exciting new loan program that is launching in only six major Metro Areas, including Atlanta, and it is limited to only 12 lenders across the country. It is a Fannie Mae Conventional loan program that gives eligible first-time homebuyers a Grant of $5,250 that can be used towards the 3% down payment requirement. Eligibility for this program has very few restrictions that would typically be associated with programs like this. For example, there are no income limits, and your credit score can be as low as 620. These dollars are not a loan but an actual grant that does not have to be repaid. Typically, any lender contribution like this could not be used towards the down payment, only closing costs. In this case, you can get the grant and in addition if you can negotiate with the seller to pay some of your closing costs, which is permitted as well. That is what makes this program so unique and beneficial. This Grant is offered as part of an effort by these lenders to comply with the Community Reinvestment Act, which mandates that they do a certain amount of lending in the low to moderate income census tract areas. Because of this, you may think that this program is only available in less than desirable areas but to our surprise, it is available in 452 census tracts in 17 counties within Metro Atlanta. The crazy thing is that it is not based on where the home that you are purchasing is located but instead, where you currently live. Yes, you read that right. If you know any first-time homebuyers (anyone that has not owned a home in the last 3 years) that are eager to see if they can take advantage of this wonderful opportunity, all we would need is for them to call us and give us their current address to see if they are eligible….678-483-3300.
With Higher Rates, It Still Makes Sense To Refinance!
Today many people could benefit from refinancing for various reasons including paying off pesky credit card debt, car loans, higher interest rate installment loans, student loans, business loans and/or to do those renovations you’ve been talking about for a while now. And contrary to what you would read in the media, home prices continue to rise, providing most of us with plenty of equity to comfortably make this happen. The challenge for many is that you currently have a low interest rate home loan that you do not want to part with. But even with rates notably higher than what you may currently have, it oftentimes makes sense to explore the possibility of streamlining your cash flow situation. Consider this situation we just helped a client with. They had a loan amount of roughly $250,000 at an interest rate in the high 3% range, credit card debt of $28,000 and a high interest rate installment loan of another $42,000. In addition, they wanted to pull out $80,000 for renovations. The new loan amount was +/- $400,000 and the interest rate was roughly 3% higher on the new loan. But as it turned out, even after pulling an additional $80,000 in cash for renovations they were going to be saving over $1100 per month from a cash flow perspective. They had 24 years left on their existing loan but if they were to put an extra $300 per month in principle toward their new mortgage payment (out of the $1,100 they were saving) they would be paying the loan off in that exact same time frame. In summary, even with a much higher rate they wiped out all of their debt, extracted $80,000 for renovations, saved $800 per month, and still will pay off their mortgage in the same 24 years they had remaining. If you would like to explore your options, feel free to give us a call. We have a great debt consolidation tool we use to determine the viability and show you options.