HOW TO BUY A HOME
WITHOUT PROOF OF INCOME?

Have you ever heard about the Community Development Financial Institution (CDFI) program offered by the US Department of the Treasury Program that helps low-income communities? My team and I have learned about it during our recent online meeting with Champions Funding, a Non-QM lender.  A video cut of our online conference is available at this link.

Basically, it means that if you have or can get a gift for 20% of the down payment, you can buy a property without the need of proving any income. Moreover, if you are an African American or Hispanic, or are from Vietnam, or reside in a low-income area, which is determined by the Census Truck, or have one of the medical conditions, which are part of the ADA (The Americans with Disabilities Act), you can be entitled to a special discount.

Sounds wonderful, doesn’t it? But is there a catch? First of all, the interest rate under this program is higher than under regular loans (additionally requiring verification of income). Second of all, under this program you are required to have reserves. As mentioned above, the down payment can be provided as a gift, while reserves have to originate from a borrower’s own funds.

To give you an idea of how it works, one of my clients was buying a home for $688,000. The down payment of 20% had to be $137,600. In addition, he was required to show $78,500 of his own funds in reserves. At the loan rate of 8.875%, the monthly payment was going to be $4,842. So, as you can see, this program is not for everyone. To find out if it will work for you, don’t hesitate to give me a call at (415) 225-7920 or send me an email at [email protected].

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602