They're back!!
BBVA Compass helping low- and moderate-income borrowers overcome barriers to homeownership [3]
- New HOME program helps qualifying borrowers meet down payment, closing costs
- It's part of bank's effort to support low- and moderate-income individuals, neighborhoods
February 26, 2015
BBVA Compass announced today the launch of its Home Ownership Made Easier, or HOME, program, which helps low- and moderate-income borrowers overcome one of the most significant barriers to homeownership — saving enough cash to cover down payment and closing costs.
HOME allows qualifying borrowers to finance up to 100 percent of a home's value, with the bank contributing up to $4,500 toward certain closing costs. The program is part of BBVA Compass' recent pledge to put $11 billion in lending, investments and services toward supporting low- and moderate-income individuals and neighborhoods, and will also include a free online homebuyer education course to help prepare borrowers for the responsibility of managing a home loan.
"We've built a comprehensive program that will help many people across our footprint realize the dream of homeownership — something that may have seemed unattainable to them in the past," said Eduardo Castaneda, executive director of real estate lending for BBVA Compass. "The financing and closing cost assistance, and the essential homebuyer education, will help ensure they enjoy the benefits of their new home for years to come."
* * *
Other benefits of the bank's HOME program:
Borrowers can move into a new residence with as little as $500 of their own funds.
The HOME mortgage is also available to borrowers with higher incomes if they're financing properties in low- or moderate-income census tracts.
WTF! - $500 buys you a house (on massive leverage) AND rich people can fund 100% if the houses they are slumlording buying are in relatively poor areas.
* * *
How do you qualify for a 100% LTV mortgage...
To qualify for the HOME Program, certain eligibility requirements must be met. Those eligibility requirements include, but are not limited to
1) the property must either be located in a low-to-moderate income census tract (https://www.ffiec.gov/geocode/ [4]), or
(2) the applicants on the loan cannot have an income greater than 80% of the HUD median income for the area.
So to be clear... BBVA will lend you 100% of the valkue of your home (and pay you $4500) if you are relatively poor and live in a relatively poor area...
Brilliant!!
h/t @RudyHavenstein