According to Harry Smith , vice president and branch manager of Bank of America Mortgage , These programs are ideal for people who are looking for home buying help
.This is the first time we have products to overcome traditional obstacles such as credit ratings and down payments..
Two loans for two needs
The Neighborhood Advantage Credit Flex program is geared toward the homebuyer whose qualifications fall outside the traditional credit scoring process.
The Credit Flex program is a 30-year , fixed-rate mortgage that only requires a three percent down payment , with only one percent from the borrower's own funds , says Smith
Borrowers interested in the program , but lacking a credit history , can document that they have paid their rent on time for a period of 12 months.A major advantage , especially to those individuals who work more than one job , is that Credit Flex allows a portion of income earned through part-time or casual employment to be considered in the application process.
Another loan program , the Neighborhood Advantage Zero Down Mortgage , benefits the aspiring homebuyer who works hard to make ends meet but has not had the opportunity to save for a down payment on a home.Smith
believes that this program is more attractive due to its appeal to so many people who were prevented from becoming homebuyers before..
NationsBanc Mortgage requires significantly less out-of-pocket cash to complete a home purchase than is required with a traditional three percent down payment mortgage or a Federal Housing Administration ( FHA ) mortgage.
To be eligible for these Neighborhood Advantage mortgage programs , a borrower must.
have an annual income not exceeding 80 percent of median income for the city in which he
lives.Eighty percent of a potential Charleston homebuyer's median income would be $34 , 560.