Buyer tips

New Bond 77 Program-

Bond 77 is a unique opportunity for todays market. Buyers in need of zero down loan programs have had few options lately. Bond 77 is unique because more buyers will qualify versus previous programs (higher income limits, higher sales price limits, more funding is available, etc), it’s dual purpose, there’s little geographic restrictions on properties (targeted versus non targeted), and overall this is a strong tool to initiate buyer activity!  When used for down payment assistance Bond 77 acts as a second silent lien with no payments and no interest.

There is a Recapture Tax affiliated with the use of Bond 77 money if the client can answer yes to ALL 3 of the following:

1. Borrower experiences “substantial increase” in their income, above the modified adjusted gross income. (adj gross income for bond calculated differently than fha loan).
2. There is a gain (net profit) on the sale of the home.
3. The property is sold within 9 years after mortgage is closed.

Maximum Purchase prices with Bond 77 vary on “Target” versus “Non Targeted” areas and by the loan product Bond 77 is being used in conjunction with.  We will be using Bond 77 with our FHA loan product.  FHA loans require a 3.5% down payment and allow up to 6% seller concessions.  Bond 77 will be creating a zero down home loan opportunity for buyers widespread!!! 

1. Targeted areas (combined w/ fha guidelines) – Max Purchase Price = $299,250

2. Non Target areas – Max Purchase Price = $258,690

Please email:  nancizimmerman@yahoo.com for additional information.

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