Zero Down Purchase Program Offered by VMA

Key Details:

1. Down Payment Assistance:
   • MCL offers a second lien mortgage for 3% of the purchase price, up to $15,000.
   • This second lien has no monthly payment requirement and bears a 0% interest rate.
   • The second lien is fully due as a balloon payment upon refinancing, paying off the first lien, or with the final payment of the amortization schedule of the first lien.
2. Eligibility Criteria:
   • Borrowers must have a FICO score of 620 or higher.
   • Loan-to-Value (LTV) must be 95% to 97%.
   • Borrowers’ income must be at or below 80% of the Area Median Income (AMI) for the property’s address and meet Home Possible® guidelines.
3. Additional Benefits for Very-Low Income Borrowers:
   • Borrowers with income at or below 50% AMI (VLIP borrowers) will receive a $2,500 credit as part of the 3% assistance. This credit does not need to be repaid, reducing the borrower’s debt obligation from the second lien.
4. Property and Loan Parameters:
   • Available for primary purchase only.
   • Manufactured homes are not permitted.
   • Loan must be a 30-year fixed-rate mortgage.
   • Loan amount must be within the conforming loan limit (no high-balance loans).
5. Homebuyer Counseling:
   • First-time homebuyers are not required. However, if all occupying borrowers are first-time homebuyers (no property ownership in the last 3 years), homebuyer counseling is required from one of the following:
     • Free homebuyer education courses offered by MCL.
     • Online homeownership education developed by mortgage insurance companies.
     • Programs meeting National Industry Standards for Homeownership Education and Counseling.
     • Freddie’s CreditSmart course (including Modules 1, 2, 7, 11, and 12).
6. Mortgage Insurance:
   • Borrower Paid Monthly and Lender Paid mortgage insurance options are available.
7. Temporary Buydowns:
   • Both Lender Paid and Seller Paid Temporary Buydowns are offered.

Summary:

The Zero Down Purchase program by VMA is designed to assist borrowers with a FICO score of 620+ and an LTV between 95% and 97% to buy a home with no upfront down payment. This program includes a second lien with no interest and no monthly payments, capped at $15,000. Borrowers must meet Home Possible® guidelines and have income at or below 80% AMI, with additional benefits for very-low-income borrowers.

For further information or specific scenarios, please reach out to your VMA team.