New Mortgage Product = (New) Business

If SOME Of yOuR CLIENTS ARE BEING kEpT OuT Of ThE MARkET By LIMITEd dOWN pAyMENT fuNdS, A NEW MORTGAGE pROduCT COuLd hELp yOu TuRN ThEM INTO hOMEOWNERS. ThE N.C. hOME AdvANTAGE MORTGAGE™ OffERS COMpETITIvE INTEREST RATES ANd GENEROuS dOWN pAyMENT ASSISTANCE – up TO 3 pERCENT Of ThE LOAN AMOuNT– fOR BOTh fIRSTTIME ANd MOvE-up BuyERS. ThE MORTGAGE hAS NO SALES pRICE LIMITS

Developed by the North Carolina Housing Finance Agency, the new product owes its flexibility to its creative use of taxable financing. The 30-year fixed-rate FHA, VA and USDA mortgages are funded through the sale of government-insured, mortgage-backed securities. Down payment assistance is structured as a zero-interest, second mortgage, forgiven in 15 years. The N.C. Home Advantage Mortgage™ is the only loan product in the state with this benefit.

“REALTORS® play an important role helping fami lies navigate the home buying process, from under standing what they can afford to applying for the loan,” said Bob Kucab, executive director of the N.C. Housing Finance Agency. “We’re excited that the N.C. Home Advantage Mortgage™ will help REALTORS® make homes affordable for more North Carolinians.”

Buyers may be eligible for an N.C. Home Advantage Mortgage™ if they: w Are buying a new or existing home in North Carolina and occupy it within 60 days of closing w Have an annual qualifying income of $85,000 or less w Are legal residents of the United States

w Have a credit score of 640 or higher

Buyers don’t need to repay the down payment unless they sell, refinance or transfer their home. The loan is completely forgiven at a rate of 20 percent per year beginning in year 11, making it completely forgiven after year 15.

First-time home buyers and veterans can even use a tax-saving Mortgage Credit Certificate (MCC) with the N.C. Home Advantage Mortgage™. The MCC can reduce the home buyer’s federal income tax liability up to $2,000 a year for each year they occupy the home as their primary residence. MCC income and sales price limits and other limitations apply. Move-up buyers, other than veterans, are not eligible.

You can learn more about the N.C. Home Advantage Mortgage™ and the MCC (and earn CE credits) through Financing Dreams, a four-hour class offered by the N.C. Housing Finance Agency. Real estate agents who complete the class are listed as Preferred Real Estate Agents at www. nchfa.com. The N.C. Housing Finance Agency also provides marketing materials, including an electronic flyer that agents can tailor with their own information.

To learn more about Financing Dreams, contact Kat Driscoll, training and outreach coordinator, kjdriscoll@nchfa.com or 919-877-5683.

You and your clients can find additional information about the N.C. Home Advantage Mortgage™ and MCC and locate a participating lender from our statewide network at www.nchfa.com. v

By ANDREA BuShNELL EXECuTIVE VICE PRESIDENT