CREATIVE HOME PURCHASING TIP
FHA AND FANNIE MAE APPROVES THE USE OF CREDIT CARDS…
NO JOKE:Charging a three percent, home down payment
on a credit card is the mortgage industries latest attempt to get more people
into home ownership.
Two major players have led the charge in this new arena, Fannie Mae and FHA.
The Flex 97 program is available through many area mortgage lenders. The program
allows for only 3% down from any source, including a credit card. Further, there
are no limits on income or purchase price with this program. It also allows for
streamlining. This is a faster approval process than the normal avenues. Mortgage
interest and insurance rates are no higher than a regular loan. The Flex 97 Program
is available only through lenders, not mortgage bankers.
Should this program appeal to you; a free list of lenders is available by
calling 1-800-7-FANNIE. You must have good credit for the Flex 97 Program. Flex
allows for no more than 33% of your income to go for the mortgage payment and
41% for your total debt. This is an excellent way to purchase a home, especially
should you have little or no down payment money.
This is the most important question you could ask! I would be happy to help
you analyze which answer is the correct one for you. Generally, I believe it
is a great concept. Realize that to own a home gives you numerous tax advantages
that a credit card simply cannot. The sooner you can own a home and make the
payment in comfort--the better off you will be, now and later! Remember that
borrowing against a credit card can never result in foreclosure…. your
home will remain your home.
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Information provided by this website is general and is not a substitute for professional
advice. Please consult your investment advisor and/or attorney before entering
into any transaction.