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Old 11-08-2008, 07:52 PM
 
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I understand that there are a lot of local and nationwide programs that give a slight discount in mortgage rates to first-time homebuyers. I have seen some programs that cater to lower-income people and thus have an upper limit on income to qualify. Are there any programs with no such limit? Thanks!
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Old 11-08-2008, 08:07 PM
 
Location: MID ATLANTIC
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I would guess by your profile, you are in Chicago. Almost every state has their own program that is funded by tax-free bonds (therefore, they do have some restrictions). In VA, we have a great program that allows for 102% financing at below market rates. Income is limited to 108K, max sales price is 408K. But for your area, you really need to ask in your area. These programs are typically not brokered and handled by banks or mortgage companies.
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Old 11-09-2008, 09:16 AM
 
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Yep! I would imagine every state has various first-time homebuyer programs which can offer discount rates and most, if not all, will have income limits.

We qualified (just barely) for a program that took .5% off the market rate, but it was a tight ceiling to fit under.
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Old 11-09-2008, 09:19 AM
 
Location: East Tennessee
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I've seen Credit Unions offer discounts on rates for first time homebuyers without income guidelines but you have to be well qualified (high credit scores and low debt to income). HUD sets income guidelines for various programs. You can review 2008's list here --> HUD USER - FY2008 Income Limits.
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Old 11-09-2008, 12:30 PM
 
Location: MID ATLANTIC
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The HUD income list is for reporting statistical data. This is used for reporting and monitoring loans to low to moderate income families. Some, but not all programs, will use that particular chart. The problem is, HUD's LMI is not the State of Virginia's, nor the Federal Home Loan Bank. If one were to assume those were the income caps, many would walk away, when in fact they are eligible. I suspect TampaKaren was directed to that site for one program available in her area. For example, HUD's chart for my area:

FY 2008 Income Limits Documentation System -- Summary for Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area

versus the income limits imposed by Virginia for the same Metro Statistica Area:

Sales Price and Income Limits for Virginia Housing (http://www.vhda.com/vhda_com/Template_app.asp?VHDA_COM_PAGE_NAME=Limits - broken link)

Then, to make it even more confusing, ACORN was set at 120% of median income, and I believe just recently dropped to 80% of median income. The Federal Home Loan Bank has 12 regional banks in the Federal Home Loan Bank System, which raises funds in the global financial markets and distributes the proceeds to members and local communities. My jurisdiction is under Atlanta, whose members are commercial banks, credit unions, thrifts, and insurance companies headquartered in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. Each year we receive grant money (up to 10K per first time buyer) to distribute that is set by zip code. And once again, Fannie Mae uses a geocoder system based on census tracts, not MSA's.

There are no uniform maximum income limits from program to program and then it will vary again, state by state, year to year, and even street number by street number. In 2008 our grant applicants for the FHLB money faced capped income that varied from 77K to 120K, McLean VA had a much higher income limit than, say Manassas, VA, 30 miles away, yet in the same reporting statistical area.

Your best bet is to find someone that knows first time home buyer programs in your community. I consider myself well versed, and I mixed up the State Limit w/ the Federal Home Loan Bank, and need to correct the income cap in a prior post to 100K.
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Old 11-09-2008, 12:59 PM
 
Location: East Tennessee
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Thanks for the clarification SmartMoney! I can assure you I am well versed on first time homebuyer (FTHB) programs in Florida. Income limits are not the same across the board which is why I put in the HUD link. State programs will vary, and other factors may apply. I have about 40 programs in my FTHB book. Florida state, county, and city programs all use the HUD incomes as a guideline. Some program guidelines are liberal; others are strict. I've tried both Acorn and USDA, but neither have been successful for one reason or another. I've had only one successful Federal Home Loan Bank transaction in six years. I recently worked with a FTHB who got a mortgage revenue bond (MRB) which was great! Of course AmeriDream and Nehemiah are out of the picture again for now. Fortunately, Florida's HOP (Home Ownership Pool) will be back in January, and I have a few waiting for gap money which really helps for those in the lower income bracket. HOP money is traditionally gone within 2 days, wow!

Cubsfan, make sure your lender is well versed and experienced in first time homebuyer loan programs. A lot of lenders I've met think MyCommunityMortgage is all there is. Secondly, make sure you shop around and let each of them know that you're a first time homebuyer and choose what's best for you.

All these words, and the bottom line answer to the original thread title is: No.

Last edited by TampaKaren; 11-09-2008 at 02:03 PM.. Reason: Typos
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