Awesome Loans for moderate Income Buyers

Colorado Housing Enterprises is a non profit organization that helps Coloradoans with low to moderate incomes get affordable home loans. CHE has partnered with Northern Trust and Key Bank to offer 2 remarkable loan programs for qualified buyers. The qualifications are not the usual set of crazily high hurdles that many buyers are finding elsewhere when looking for loans. Both loan programs are at low interest rates for 30-year fixed loans with minimal loan closing costs, have no mortgage insurance, and require low to no downpayments. If the highlights interest you and you wonder if you qualify, please contact George Apodaca at CHE to find out more details (720-542-6568 or george@crhdc.org). Tell him where you heard about these loans, please.

Northern Trust's Neighborhood Home Ownership Loan, originated by CHE:
*30-year fixed at a competetive interest rate (call for current rate)
*No Maximum loan amount
*97% Financing (loan to value)
*Combined Loan to Value cannot exceed 100%
*No Mortgage Insurance
*Ratios: 38/45
*Normal closing costs apply, less $1000 closing cost credit for attending Homebuyer Education Class (can be used towards closing costs (except for escrow and pre-paids, borrower is required to pay at the time of closing)
*No credit score required, but 3 sources of credit or alternative credit required.
*All collection accounts and derogatory accounts paid in full--no bad debt in the last 24 months
*Medical collections that have been satisfied need a letter of explanation
Restrictions:
*Must be owner-occupied, primary residence
*Annual Household Income not to exceed $60,800 or 80% of the Area Median Income (AMI) or home to be purchased is in a low-moderate census tract (as defined by HUD)
Upfront Costs:
*$25 for credit report to CHE
Other Considerations:
*Process for purchase can take up to 4-6 weeks from the time Northern Trust receives the purchase contract to closing
*Process for refinancing can take up to 6-8 weeks
*Cash-out refinance for home improvements only
*Student loans are considered in the debt ratio
Loan Fees (paid at closing):
*1% origination fee to CHE paid by Northern Trust
*Standard closing costs apply plus 3% down payment (CHE Down Payment Loan is an acceptable 2nd)
*Appraisal is paid at time of closing

Key Bank's Key Community Mortgage Loan, originated by CHE
*30-year fixed, below market interest rate (call for current rate)
*Up to 100% financing of purchase price with +620 credit score, 97% financing for 600-620 credit score
*No mortgage insurance nor mortgage insurance premium
*Collections and judgements must be resolved (no late payments in the most)
*Loan amount up to $250,000
*Annual household income not to exceed $60,800 or 80% of the Area Median Income (AMI) or home to be purchased is in a low-moderate census tract (as defined by HUD).
*Borrower cannot own any other property at the time of closing.
*Alternative credit is acceptable (3 trade lines plus VOR)
*Traditional credit--must show a minimum of 4 trade lines for at least 24 month age each.
*24-month history on rental is required (without late payments in the most recent 12 consecutive months)
Upfront Costs:
*$25 for credit report to CHE
*Once property is under contract, borrower pays $325 for appraisal and $11.75 for credit report to Key Bank
*NOT a refinance loan
Other Considerations:
*Process can take up to 45 days due to the underwriting process
*Seller contribution allowed up to 3%. Borrower needs to have at least $500 of their own funds to contribute (earnest money counts), and one month of reserves. Closing costs 3-5%.
*Funds required to close may be a grant, a gift from a family member, or provided through a down payment assistance program
*Borrower required to open a bank account with Key Bank with at least $50
*Borrower required to attend a CHFA approved Home Buyer Education class
Loan Fees (paid at closing):
*1% origination fee
*1% discount fee
*$300 application fee
*$90 recording fee
*Title insurance ($3.50/$1000 borrowed)

Please note that all loans are subject to the buyer's ability to meet the underwriting qualifications.

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