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Special programs for special people

Bob Kieber
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Financial Facts.BY BOB KIEBERIn the world of mortgage lending, every now and then a special program for special people may arise. One of those programs is now available for very special people, and those people are teachers.

I know of two nationwide mortgage lenders that have programs just for teachers. The program itself will lend to teachers 100 percent of the purchase price of the property. So if you are a teacher here in the High Country, it just may be the right time to go house shopping.A few of the requirements include being a full time or part-time teacher. You must teach anything from kindergarten to high school, plus you can teach in a public or private school. The home must be your primary residence. And, best of all, with such a high loan to value, no mortgage insurance is required.Now for those of us who are not in the teaching profession, there are other mortgage programs that were set up with similar guidelines. Law enforcement professionals and medical professionals now have these programs. One in particular is the 100 percent financing program for those with very good credit histories. If you have a credit score over 700, most major lenders now have mortgage programs that will finance not only 100 percent of the purchase price, the program will also pay up to an additional 3 percent for closing costs.

For those potential buyers who have credit score less than 700 there are other programs that have up to 100 percent financing available. As an example, you have a credit score of 620 and want to finance as much as possible, there are lenders that have 80 percent first mortgages and 20 percent second mortgages. Simple math tells me that they add up to 100 percent.Other Niche programs that allow for low down payment and high loan to value include both FHA and VA (Veteran) mortgages. FHA loans allow up to 97 percent loan to value, and VA loans go to 100 percent. Both of these loans are fairly easy to obtain, but keep in mind that the condition of the property is very important. Very comprehensive appraisals are required; I have seen the purchase closing be postponed as there was peeling paint in a bathroom so the room must be repainted prior to the underwriter giving full approval to the mortgage.If you are a veteran, especially a first-time homebuyer, a VA loan is a viable way to obtain financing. There is a bit more paperwork in obtaining a VA mortgage, but since 100 percent of the purchase price is covered, it is generally worth the time and trouble.



So keep in mind, especially now that mortgage interest rates are low, there may be a special financing program just right for you. I suggest that you call me or another mortgage professional today to learn more about special programs available to you.For answers to your mortgage related questions, call BOB KIEBER at (970) 262-1199 or e-mail him at rkieber@comcast.net. Bob is a local mortgage banker and principal of Resort Lending. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country.


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