Community Development Mortgage Program

WELLS FARGO’S OWN COMMUNITY DEVELOPMENT MORTGAGE PROGRAM (CDMP)

This is a great alternative to FHA.  Remember, the FHA monthly MIP will increase by ¼% on 4/18/11.  This is great for buyers who are qualified but cash-strapped.

Some of the features of the CDMP program:

• No Monthly Mortgage Insurance and no Up Front MIP or Guarantee Fee

• 2% down payment

• No cash reserves required

• Homebuyer education required – must be face-to-face

• Primary residences only

Borrowers must be legal residents of the US and do not have to be first time homebuyers.  However, they cannot own any other property at the time of closing on new property.

• Minimum credit score 620

• No maximum sales price or loan amount (based on income qualification)

• Maximum debt-to-income is 42% (one ratio only)

• Income limitations (based on 80% of median income for area)

• Seller can contribute 3% of sales price towards buyer’s closing costs and prepaid items

• Self employed for 1 year acceptable – must reflect on tax return

• Manufactured housing not permitted

• All attached dwellings must have an HOA

• Parents are permitted to be co-borrowers with their children.  The occupant must meet minimum required ratio.

• 1% origination fee charged on all loans.  You cannot buy the rate up to avoid the 1%.

Comparison on a typical Frederick home:

For more information, please contact:

Kathy Daubert

Related posts:

1. Buyer’s Grant Subsidy Program
2. Maryland’s CDA Program
3. Weekend Mortgage Rate Update for Frederick Buyers
4. The How’s and Why’s of Shopping for a Mortgage
5. Monday Mortgage Market Update

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