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  • October 31, 2007 at 9:48 PM #10780
    the dingo
    Participant

    Hey team,
    I know most people say not to buy now, but if you need to refi out of a bad loan, or want to buy a new home under 500k, then check out acornhousing.org this is a non profit group that I just got a loan from.

    Believe it or not I got the following loan. 475k 100% financing, no pmi on a 40 year fixed with the first 10 years interest only. It is not an 80/20 it is all on one loan. My rate was 6.1%, but that was in July. (ealier I posted my home cost 445k, but that was counting a credit from the buyer. So if you saw that post that is the reason for the change.)
    Here are the stipulations. You can’t make over 90k per year. You must attend two 3 hour counseling classes. It is full doc.
    There is also a program called the cadat, where the state of california pays three points to lower your rate even further. This is in the form of a silent second that needs to be paid back when you sell it if ever. We ended up getting the seller to pay this. Hey it’s a buyers market. Also, this loan is not based on credit score at all you can have no credit history. The only stipulation is that you cannot have a late payment in the last 12 months. I know this sounds amazing, and it is. With out it I could not have gotten my new home. The loans are serviced by BofA, so it is solid. They also do refi’s.
    One last thing, don’t start shopping until you finish the classes and get your certification from them. They are in no hurry to close loans fast and I had to extend my contingency period to from 17 to 60 days. I thought the seller was going to cry when he got the news.But like I said, It is a buyers market and he agreed. Don’t believe these numbers, check the site and give them a call and you can see from yourself. I hope this helps a lot of people.

    November 1, 2007 at 9:48 AM #94154
    CBad
    Participant

    Wow, 40 year/100% loan with interest only for the first 10 years and this is considered a good thing? What did you learn in the 6 hours of classes? At least it’s fixed.

    November 1, 2007 at 9:48 AM #94190
    CBad
    Participant

    Wow, 40 year/100% loan with interest only for the first 10 years and this is considered a good thing? What did you learn in the 6 hours of classes? At least it’s fixed.

    November 1, 2007 at 9:48 AM #94199
    CBad
    Participant

    Wow, 40 year/100% loan with interest only for the first 10 years and this is considered a good thing? What did you learn in the 6 hours of classes? At least it’s fixed.

    November 1, 2007 at 9:56 AM #94166
    CBad
    Participant

    Also, if you make under 90K, you can’t afford a 475K loan. That’s why it’s interest only.

    November 1, 2007 at 9:56 AM #94204
    CBad
    Participant

    Also, if you make under 90K, you can’t afford a 475K loan. That’s why it’s interest only.

    November 1, 2007 at 9:56 AM #94213
    CBad
    Participant

    Also, if you make under 90K, you can’t afford a 475K loan. That’s why it’s interest only.

    November 1, 2007 at 11:36 AM #94214
    NateK
    Participant

    I don’t get it??? Didn’t Countrywide try the same ploy and it blew up in their face. The only difference between you and those subprime loans might be the full doc and a couple of classes.

    I wish you luck. I hope you don’t add on to our inventory in the near future.

    November 1, 2007 at 11:36 AM #94252
    NateK
    Participant

    I don’t get it??? Didn’t Countrywide try the same ploy and it blew up in their face. The only difference between you and those subprime loans might be the full doc and a couple of classes.

    I wish you luck. I hope you don’t add on to our inventory in the near future.

    November 1, 2007 at 11:36 AM #94260
    NateK
    Participant

    I don’t get it??? Didn’t Countrywide try the same ploy and it blew up in their face. The only difference between you and those subprime loans might be the full doc and a couple of classes.

    I wish you luck. I hope you don’t add on to our inventory in the near future.

    November 1, 2007 at 11:53 AM #94217
    bsrsharma
    Participant

    I think you got a very good loan. 6.1% APR FIXED for a 40 year loan, 100% LTV, no PMI is just insanely great. What are your payments like?

    Those who disapprove – remember: he will be paying his loan with $ that is half its value from today in 10 years, quarter its value in 20 years and 1/8th in 30 years. All the time getting a tax writeoff. If this is not a deal, what is it? In effect, he will be paying just a fraction of the amount owed, in terms of purchasing power.

    November 1, 2007 at 11:53 AM #94255
    bsrsharma
    Participant

    I think you got a very good loan. 6.1% APR FIXED for a 40 year loan, 100% LTV, no PMI is just insanely great. What are your payments like?

    Those who disapprove – remember: he will be paying his loan with $ that is half its value from today in 10 years, quarter its value in 20 years and 1/8th in 30 years. All the time getting a tax writeoff. If this is not a deal, what is it? In effect, he will be paying just a fraction of the amount owed, in terms of purchasing power.

    November 1, 2007 at 11:53 AM #94263
    bsrsharma
    Participant

    I think you got a very good loan. 6.1% APR FIXED for a 40 year loan, 100% LTV, no PMI is just insanely great. What are your payments like?

    Those who disapprove – remember: he will be paying his loan with $ that is half its value from today in 10 years, quarter its value in 20 years and 1/8th in 30 years. All the time getting a tax writeoff. If this is not a deal, what is it? In effect, he will be paying just a fraction of the amount owed, in terms of purchasing power.

    November 1, 2007 at 12:03 PM #94226
    djrobsd
    Participant

    Where’s your logic there, bsrsharma? I’m assuming you talk about the decline of the dollar? Well, when the dollar declines, you don’t think real estate values will stay up do you?! Quite the contrary, they will sink into a big hole, so 1/8th the value of the dollar in 30 years, will probably also mean the property will only be worth 1/8 its original value…

    lol

    I still see a big flaw in this Acorn program. They are giving you an interest only loan because you can’t afford to pay principal + interest. But, in 10 years, the loan re-casts itself, and you have to begin paying principal. I guess ACORN assumes your income will increase in 10 years and you’ll be able to afford the higher payments?

    Looks like the same flawed logic as an ARM to me, only the rate is fixed, but the payment certainly isn’t.

    Can a mortgage broker shed some light on how much the payment goes up after the interest only period is done?

    November 1, 2007 at 12:03 PM #94264
    djrobsd
    Participant

    Where’s your logic there, bsrsharma? I’m assuming you talk about the decline of the dollar? Well, when the dollar declines, you don’t think real estate values will stay up do you?! Quite the contrary, they will sink into a big hole, so 1/8th the value of the dollar in 30 years, will probably also mean the property will only be worth 1/8 its original value…

    lol

    I still see a big flaw in this Acorn program. They are giving you an interest only loan because you can’t afford to pay principal + interest. But, in 10 years, the loan re-casts itself, and you have to begin paying principal. I guess ACORN assumes your income will increase in 10 years and you’ll be able to afford the higher payments?

    Looks like the same flawed logic as an ARM to me, only the rate is fixed, but the payment certainly isn’t.

    Can a mortgage broker shed some light on how much the payment goes up after the interest only period is done?

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