Lakewood: Awesome Mortgage program for 1st time buyers

[Mikeoracle]

I became aware of a mortgage program that I myself cannot take advantage of, but I am helping a friend with it and figured I would post it here for all who dont know about this yet and may be eligible.

For more details and to apply you can call the LRRC 732-942-9292

I am not 100% sure but I believe it is a local program, but it is possible that it is not only Lakewood.

TD Bank is offering a 1st time Homebuyer discounted mortgage (intended to help lower income buyers) which is currently at 2.1% for a 30yr fixed rate mortgage. (This rate keeps changing until closing and I believe it is a 1.5% discount of the regular interest rate- which is currently 3.6%)
Additionally you only have to put down a 5% down payment and there is no PMI necessary. This is huge especially when the house needs to be fixed up, it leaves you with the extra cash in pocket.

To qualify for this loan;
You need to have a credit score above 660
You need to earn LESS than aprox 75k
The total monthly housing costs including Mortgage, Taxes and Insurance cant exceed 33% of your monthly GROSS income
Total monthly payments including the above plus car payments and CC payments cant exceed 38% of your monthly GROSS income
Plus the regular requirements of pay stubs, W2's etc...

An example scenario;
If you earn $50K gross annually you can buy a house worth $250K, put down $12,500 and your monthly mortgage would be $890 (I am assuming tax and insurance at aprox $500/month so total monthly expenses would equal 33% of gross income- ) An alternative to staying below the 33% debt to income ratio would be putting down a bigger down payment.

A side perk is that due to the extremely low interest rate, your monthly payments will right away be for close to or more than 50% principle as opposed to regular rates it can usually take 10-15 years or more for the monthly payment to exceed 50% principle. This way the equity gets built up much quicker.

Please note I have nothing to do with this offering, I am just passing on the info I got and think its an awesome deal to take advantage of if eligible. Any further questions you can call the LRRC directly.
Good luck.

[robi]

Other banks offer this too, some at better rates than TD, but the LRRC will only refer you to TD, so do your homework

[Mikeoracle]

Other banks offer this too, some at better rates than TD, but the LRRC will only refer you to TD, so do your homework

Cool! better than 2.1%?
Where can I find out more info?

[robi]

Cool! better than 2.1%?
Where can I find out more info?

I don't know if you'll necessarily find better than 2.1%, but other banks have easier terms,IE less makpid on income topayments ratio, will consider parental support as income etc... I looked into this a while ago, will have to look for the numbers of the people I spoke to

[Mikeoracle]

I don't know if you'll necessarily find better than 2.1%, but other banks have easier terms,IE less makpid on income topayments ratio, will consider parental support as income etc... I looked into this a while ago, will have to look for the numbers of the people I spoke to

And you just contact the banks directly?

[robi]

And you just contact the banks directly?

each bank has someone in charge of their program. I also find that many mortgage brokers in lkwd are pretty well versed in this stuff, and can direct you.

[momo613]

Is there a name for this program? I'd like to do more research.

[Mikeoracle]

Is there a name for this program? I'd like to do more research.

Not sure. When you call the LRRC I think it is one of the options on the menu.

[syp5]

TD counts rental income (legal apartment) towards monthly payment, i think 75% of rent counts for the payment and 100% of rent counts as income. Most other banks don't  which opens up a lot more opportunities. Somerset walk put out an ad this week thanking TD bank.

[Mikeoracle]

TD counts rental income (legal apartment) towards monthly payment, i think 75% of rent counts for the payment and 100% of rent counts as income. Most other banks don't  which opens up a lot more opportunities. Somerset walk put out an ad this week thanking TD bank.

+1
 I heard about that but forgot to mention.

[Saver2000]

TD counts rental income (legal apartment) towards monthly payment, i think 75% of rent counts for the payment and 100% of rent counts as income. Most other banks don't  which opens up a lot more opportunities. Somerset walk put out an ad this week thanking TD bank.

Can you elaborate a bit more please.  I'm not well versed in the mortgage industry to begin with so maybe that's why I'm not understanding what your post is saying.
Thanx

[Mikeoracle]

Can you elaborate a bit more please.  I'm not well versed in the mortgage industry to begin with so maybe that's why I'm not understanding what your post is saying.
Thanx

I believe it means that if you were in a situation that the housing cost (mortgage+taxes+insurance) were higher than 33% of your monthly gross income then usually you wouldnt qualify. In a situation where the house you were interested in had an apartment with a rental income of lets say $800, you can subtract that (or 75%) from the monthly housing cost which can bring the ration down under 33%.
I could be mistaken and it may mean that your monthly gross income goes up to include the rent $ which will help the ratio as well (although not as much as an impact as the above calculation).
Either way they calculate it helps the ratio and can get a lot more people approved than without it.

[AsherO]

This is amazing! Anyone know of anything like this outside of Lakewood? Do you get a better rate with better credit? Can you use it to refi?

[Mikeoracle]

Do you get a better rate with better credit? Can you use it to refi?

For this program I think it is only for 1st time home buyers- not refi, unfortunately :-( 
I also think this is the rate if you get approved- no matter how great your credit is - but I could be wrong.

[sim]

This is amazing! Anyone know of anything like this outside of Lakewood? Do you get a better rate with better credit? Can you use it to refi?

its not just in lakewood its all over NJ  and to get through  to them is nearly impssble

[damaxer91]

Wow.

Happy that people are getting these, but weren't all these kind of loans supposed to have been stopped post 2008?

[momo613]

I just called them. 8008226761, then press 1. Ask about their first time homebuyers program. They will answer all your questions. Unfortunately, I'm in California so no loans for me.

[Mikeoracle]

its not just in lakewood its all over NJ  and to get through  to them is nearly impssble

you have to be persistent. I got a similar program a few years ago when the rates were@ 6.25%, I got 4.75% with only 5% down.
They do try to make sure you can afford it hence the debt to income ratio max of 33%, as opposed to a regular mortgage you can usually go up to 45% or more. This isn't intended to create sub prime mortgages, its to help the lower-middle income family afford a house.

[AsherO]

This isn't intended to create sub prime mortgages, its to help the lower-middle income family afford a house.

Same difference, it's just a semantics game. "American dream doesn't mean everyone is entitled to own a home in whatever area they want to live. It also doesn't mean it's okay for people to live beyond their means.

I'm not against this program per-se, but if the ratios are so low tht people who can't afford it are buying then it's risky...

[momo613]

Anyone know any other banks that are offering this?