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New equity-building mortgage gains steam, but isn’t for everyone

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Mortgage Professional America | 02 Feb 2015, 09:03 AM Agree 0
With little to no down payment, no closing costs or fees and an interest rate that is near 0%, this program is starting to gain traction among borrowers. However, the approval process is far from easy.
  • NACA_Online | | 02 Feb 2015, 09:58 AM Agree 0
    We anticipate one-third to one-half of all NACA borrowers will qualify for this new product.
  • MortgageGuyinPA | | 03 Feb 2015, 11:43 AM Agree 0
    What problem does this solve for NACA borrowers that is not better served by many existing programs? There are already plenty of first time buyer programs, along with closing cost assistance programs and MCC's, that can help buyers. Putting them into a 15 year mortgage inflates the payment and removes any flexibility that most of these buyers need in their monthly budget. It also limits their home choices because they qualify for less. Its a nice program for Citi and BOA to tout because it sounds new and innovative and helpful, but is it? It seems NACA is trying really hard to sell this but borrowers that fall into the low-to-moderate-income category most times have multiple challenges - cash needed, ratios, credit, etc. Does this really help them? I don't think it does.
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