According to a press release from Oakland County Economic Development & Community Affairs, Oakland County can provide no-interest loans for down payment assistance, closing costs, home improvements or other financing for specific areas. This offer is available to buyers purchasing VACANT, FORECLOSED homes only.
The homebuyer must prequalify for a fixed rate mortgage loan from a lending institution. This loan represents 51% of the purchase price. Oakland County will finance the remaining 49% of the purchase and rehabilitation costs up to $100,000. The homebuyer must also provide $2,000 to initiate the purchase. The homebuyer only pays on the conventional mortgage obtained from their lender.
Payment on the down payment and home improvement loans is deferred until the property changes ownership. Homebuyers with incomes at or below 120% of Area Median Income (AMI) are eligible for assistance. For example, a family of four earning up to $83,900 per year is eligible under this program. Many - but not all - communities in Oakland County are eligible.
An informational workshop for prospective homebuyers will be held Saturday, February 28, from 9 a.m. to noon at the Oakland County Executive Office Building Conference Center, 2100 Pontiac Lake Rd., just west of Telegraph Rd., in Waterford. Pre-registration is not required.
For more information, go to http://www.oakgov.com/chi.
Hi Lisa
ReplyDeleteI looked into that and while it sounds great Oakland County hasn't researched the practical application of the program. To that I mean FNMA (Conforming) will not do a 100% CLTV the maximum is 97% CLTV. Additionally, couldn't be considered a gift because not immediate family and if sold inside x years has to be repaid.
So they are on the right track but cannot be applied in a practical sense.
Chuck Withey