About the ACORN loan
Posted on Monday, July 30th, 2007 at 2:15 pm.Bank of America offers an amazing homebuyer program which allows you to get up to 100% financing with one primary loan (not a "piggyback" loan), put no money down, pay no Private Mortgage Insurance, along with a below-market interest rate (yes - we couldn't believe it either when we first heard about it!). Here is a flyer describing the program, and here's how it works:
- Borrower's income cannot exceed $105,840/yr for the DC Metro area, $118k in Montgomery County. NOTE: This cap is lifted in certain areas designated by HUD. For example, in Logan circle, this cap does not apply. Contact us for more excepted areas.
- You don't need to be a first-time buyer, but you can't own any other property at the time of closing and you must plan to occupy the residence.
- Fair to good credit is required, but there's no minimum credit score. (You cannot have any "late payments" on your credit report within the last 12 months)
- Maximum loan amount is $417k
So what's the catch? The only requirement, other than the terms above, is that you attend a one-day "Homebuyer Education" class. ACORN is a nationwide non-profit "providing free housing counseling to low and moderate income homebuyers since 1987". You can learn more about them here.
So how good a deal is the ACORN program? Well, here's a clue - when we asked another lender if he could match or beat it, here's what he said:
"Bank of America uses the program through ACORN as part of their CRP portfolio (Community Reinvestment Program). They lose money on the loans but they get a lot of good PR from it. If you qualify and have time for the classes and underwriting it's a great deal."
We think the loans are great for buyers who qualify as well. Contact Shap in the "Trusted Lending Partners" section on this page for more information.
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September 4th, 2007 at 9:03 am
We have used this loan for several buyers via Bank of America–and the results have been terrific.
September 4th, 2007 at 9:06 am
I love this program!!! They helped a few of my buyers out with outstanding results!!!
September 10th, 2007 at 12:59 pm
FYI the new income limits for DC are $111,120. Montgomery County $121,320 and Fairfax County is now $111,120. You can have 2x 30 day past dues within the past 12 months. I hope this is helpful.
September 12th, 2007 at 10:21 am
Thank you Daniel. I have never heard of this program. I want to learn more about this program so that I can introduce to some of my prospects if not all of them. Great post.
September 13th, 2007 at 9:44 am
Daniel, I will be checking with Bank of America tomorrow about this program. This will be perfect for some first time buyers I am working with tomorrow. This is perfect timing for me. Thank you for bringing this program to our attention.
Pat Hommel, Annapolis, Maryland