BBVA Compass Launches No Down Payment Mortgage

BBVA Compass Launches No Down Payment Mortgage

 Image title

Sure, Fannie and Freddie now allow LTVs as high as 97%, and the FHA only requires 3.5% down, but why stop there?

Today, BBVA Compass announced the launch of its “Home Ownership Made Easier” (HOME) loan program, which allows borrowers to snag 100% financing on a home purchase.

The bank is offering the new product as part of its pledge to put $11 billion to work to help low- and moderate-income individuals realize the dream of homeownership.

In order to qualify, the applicant(s) on the loan cannot have an income that exceeds 80% of the HUD median income for the area in which they buy.

[See the latest mortgage rates from dozens of lenders, updated daily.]

Assuming they fit within those limits, they can get a home with as little as $500 from their own funds.

For the record, the program is also available to borrowers with higher incomes if they finance properties in low- and moderate-income census tracts.

HOME Program Comes with a $4,500 Lender Credit

Aside from requiring nothing down to purchase a property, the HOME program also comes with a lender credit of up to $4,500 to cover closing costs such as the loan origination fee, underwriting and processing fees, and title reports, to name a few.

It can also be used to pay for the appraisal and credit report, though it cannot be used for discount pointsor escrow items such as insurance premiums and taxes.

However, the seller or another third party is permitted to pay for these items.

Just remember that a lender credit will lead to a higher mortgage rate…it’s not really free, just less out-of-pocket early on. In fact, it costs borrowers over the long run in interest.

BBVA Compass executive director of real estate lending Eduardo Castaneda noted in the press release that borrowers participating in the HOME program might enjoy monthly mortgage payments that are lower than their current rent payments.

And that would apparently prove their ability to make payments going forward, despite what some may call higher-risk lending.

Additionally, borrowers will have to complete a homebuyer education course if they wish to utilize the program, which has proven to lower default rates in at least some cases.

HOME Only Offers Fixed-Rate Programs, But No PMI!

The HOME Mortgage is only offered in fixed-rate varieties, with 30-, 25-, 20-, 15-, and 10-year fixed mortgages available.

This will ensure that borrowers won’t face any surprises if mortgage rates climb in the future, which they’re sure to do.

More importantly, borrowers don’t have to deal with pesky private mortgage insurance when they go with the HOME program.

That can save $150 or so a month depending on the situation, which should help to keep monthly payments down.

If you’re not familiar with BBVA Compass, it’s the U.S.-based subsidiary of Spanish bank BBVA, which also happens to be the largest financial institution in Mexico.

Compass has 672 branches mostly in Sunbelt-states, including Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas.

Article by Colin Robertson



William Graves Headshot
Author:
Phone: 817-966-5890
Dated: November 17th 2015
Views: 895
About William: I was raised in Trophy Club, graduated from Grapevine High and attended the University of North Texa...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Aug 16 2017 25796 1 -   Money Saving Tips for
Homeowners Net Worth Is Still Greater Than A Renters - Homeowner’s Net Worth Is Still
Is 2017 The Year To Move Up To Your Dream Home By John Priestash - IS 2017 THE YEAR TO MOVE UP TO
4 Tips For Effectively Making An Offer By John Priestash - 4 TIPS FOR EFFECTIVELY MAKING AN

Our Bloggers

The Doyle Team * - 2
Comprar Casa DFW * - 3
Nikki Acker - 2
Gabrielle Armstrong - 5
Cara Balderas - 52
Tami Bennett - 45
Justin Blackburn - 1
Jessica Boozer - 18
Rhonda Borgne - 1
Olivia Borowski - 1
Jennifer Boyd - 2
Deborah Boyd - 390
Jamie Brannagan - 1
Kathryn Brick - 1
Annette Bruen - 47
Moira Brunken - 18
Beverly Bryant - 24
Ana Cantu - 1
Lisa Cardillo - 53
Bob Cardillo - 4
Lucina Cervantes - 11
Gregory Cornett - 2
Angela Cotten - 85
Missie Craig - 12
Greg Cunningham - 2
Sarah Dieter - 9
Belinda Duff - 5
Eva Duffy - 5
Leah Ecob - 15
Kristine Edens - 3
Jill Elliott - 99
Laneal Ernest - 9
Nicole Espinosa - 27
Christopher Evans - 1
Heather Feragotti - 8
Mark Fischer - 2
Susan Florsch - 12
Jennifer Flynn - 9
Leslie Fogle - 101
Larry Frassinelli - 6
Chad Gabriel - 58
Shalee Garza - 10
Tammy Gill - 1
Timothy Gilliam - 2
Christina Gonzalez - 5
Wilma Goodwin - 2
William Graves - 5
Jimmy Hanks - 1
Kristen Henderson - 1
Candie Hernandez - 1
Beth Herr - 1
Hunter Howard - 1
Sandra Hunt - 92
Bill Hurd - 3
Gary Hutchings - 20
Rachel Jama - 47
Trenton Johnson - 15
Marla Johnson - 1
Felicia Johnson - 79
Dakota Joyner - 9
Sunil Kanjia - 5
Jemi Khan - 26
Leigh Klotz - 5
Amber L Johnson - 9
Michele Lafortune - 22
Wanda Lewis - 2
Stacy Lynn Massar - 27
Chuck May - 1
Jennifer Menting - 17
Mikki Migis - 8
Richard Mikus - 1
Sean Moniri - 21
Naddia Morales - 10
Candace Mozingo - 1
Mark Mulch - 19
Erick Murphy - 6
Steve Murray - 1
Julie Nicholson - 10
Nikki Okpuzor - 3
Alan Oliver - 7
Kelly Oltmann - 4
Kaysone Orlando - 1
Holli Paddio - 3
JP Piccinini - 50
Julie Ann Pickering - 85
Ann-Marie Pope - 2
John Priestash - 29
Joshua Putman - 111
Mimi Rader - 1
Shelia Randolph - 33
Teneka Ray - 1
Go 2 Girls Realty - 173
Bethany Rowan - 15
Kristi Roy - 1
Kelly Rumney - 9
Amy Jo Saenz - 3
Linda Scardis - 4
Sandy Setliff - 219
Christine Shannon - 30
Rene Sinclair - 27
Shelby Smith - 3
Bryce Smith - 5
Monica Solkhon - 1
Rodrigo Sotomayor - 16
Jenna Stanley - 9
Tim Stoll - 33
Kelley Stubbs - 3
Melodie Sulgrove - 1
Seana Taylor - 217
Mary Taylor - 14
Kevin Taylor - 15
Julian Taylor - 17
Erica Taylor - 54
Angela Taylor - 1
Karla Terrell - 2
Joey Thomas - 2
Michele Thompson - 6
Jason Todd - 24
Andrea Trimble - 55
Sarah Uber - 3
Yael VanGruber - 1
Diane Velez - 17
Debbie Viverito - 132
Rachel Walsh - 2
Nick Walton - 75
Spring Weeks - 9
Clint White - 2
Michael Worley - 164
Martina Worley - 2
Keisha York - 30
Audra Young - 1
Debbie Zurita - 17

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

JP And Associates REALTORS
6136 Frisco Sq Blvd, #200
Frisco, TX
972-375-9448


Other Locations