We are pleased to provide a guest blog regarding mortgages and lending. Mike Neill of American Alliance Mortgage Company will be our guest blogger… Mike can be reached at 480-505-2202
or via e-mail at mike@aamcbank.com
§ When using a non-occupant co-borrower, such as parents, the occupant borrower is not required to have any income or assets of his/her own.
§ 2 to 4 unit owner-occupied properties are eligible for 96.5% financing at the same interest rate as 1-unit homes.
§ Mom and dad can lend, (as well as gift), some or all of the money for closing, and put a second lien against the home that exceeds 100% Loan to Value (LTV = Loan Amount/ Home’s value) Note: The $8,000 First Time Home buyer Tax Credit can be used to pay Mom and Dad back!
§ FHA has NO declining market policy reductions in LTV.
§ Seller Contributions. The seller (or other interested third parties such as Real Estate Agents, builder, developers, etc., or a combination of parties) may contribute up to six percent of the property’s sales price toward the buyer’s actual closing costs, prepaid expenses, discount points and other financing concessions.
