Ameriquest Loan Program
CDCB partners with Ameriquest to provide a 30 year, fixed rate loan based on 275 basis points over the 10-year treasury. Interest rates will be reduced by 50 bps for each 12 consecutive months when the borrower makes timely payments. A maximum of 200 bps can be applied for total rate reduction within the first 48 months of the loan term.
Details:
Target market: First-time homebuyers in Cameron County are with low to moderate income who can not meet traditional "A" paper lending requirements. Borrower(s) to have a FICO score between 525 and 610 and earn less than 80% of median income.
Owner Equity: Minimum of 3% of sales price
Mortgage Financing: 30 year term, 275 basis points over the 10-year treasury
Private Sector Financing: 100% of loan amount
Public Sector Financing: 7% of sales price from Texas State Affordable Housing Corporation (TSAHC)
Mortgage Loan Amount: Minimum $50,000 up to a maximum of 100% of the purchase limit area
Mortgage qualifying ratios: Maximum 55%
Requirements for the Ameriquest Program
- Minimum of $1250 gross monthly income
- 3% of sales price downpayment
- FICO score between 525 and 610
- Under 80% of AMFI
- Stable employment for the last 12 months
- Completion of Homebuyers Education class
Underwriting Guidelines:
Maximum ltv/cltv |
maximum 90% of sales price/maximum 100% using the appraised value |
Maximum loan amount |
100% of the purchase limit for the area |
Loan terms |
30 years |
Interest Rate |
275 basis points over the 10-year treasury |
Mortgage type |
purhcase, however the lot balance may be included in the loan if the borrower owns the lot |
Type of residence |
single family residence |
Occupancy |
owner occupied |
Downpayment |
3% of sales price |
Qualifying Ratios |
55% |
Credit |
FICO score between 525-610, no more than $5,000 in collection and charge off accounts; No alternative credit allowed; A 3% payment must be added for each collection/Charge off account and included in the debt ratio |
Homebuyer Training |
required by ACORN |
Cash reserves |
none unless borrower is not renting but living with family members will need 3 months of reserves |
Geographic restriction |
City of Brownsville and other approved areas |
Income limits |
80% of AMFI |
Non-permanent Residents |
Yes |
Limit on Seller contribution |
6% |
Temporary Buydowns |
none |
Sample Photos:
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