Latest Home Mortgage

October 2008 offers up a new home mortgage plan in northeastern Oklahoma called the "REI". This is a combo loan. The 2nd mortgage comes behind a conventional 95% or 97% loan or an FHA loan. The 1st mortgage has to be a fixed rate loan. The term of the 2nd mortgage is 20 years, fixed rate. The 2nd mortgage must be a minimum of 5% to a maximum of 7% of the sales price depending on the type of the 1st mortgage. Although there are 2 mortgages they are combined into 1 payment for the borrower. Depending on the type of the 1st mortgage the seller may still make up to a maximum of 6% in seller concessions. There are no 1st time buyer restrictions. There are maximum income limits, but these are based on the income of the actual borrower and not on the income of the entire family. The annual income limit in Tulsa, Rogers, Creek, Osage & Wagoner counties for an FHA combo is $62,905 and for a conventional combo is $76,580 as of this posting.

Unlike 100% plus programs offered in the past this is a good loan. The rates are fixed. No adjustment ahead to harm the borrower. The down payment and in some instances part of the closing costs are actually financed and not paid by the seller. This loan does not need the sales price to be altered to achieve 100% financing, so should the buyer need to sell within the 1st few years after purchase they should not experience the appraisal problems caused by false sales price inflation with some of the programs which are no longer available.