topic Re: Closing on Monday! in Mortgage Loans

Closing on Monday!

Anonymous — Sat, 06 Aug 2011 22:38:17 GMT

I just wanted to say thank you to all you guys on this forum. I received my clear to close on my first home yesterday with BB&T's CHIP program. 100% with 4.5% rate and NO PMI. No money down. I only have to pay about $300 to cover the excess closing costs! We will be closing on Monday at 2pm!

Re: Closing on Monday!

techgirl — Sun, 07 Aug 2011 00:03:20 GMT

Congrats!

Re: Closing on Monday!

Booner72 — Sun, 07 Aug 2011 00:36:04 GMT

Wonderful!

Re: Closing on Monday!

Booner72 — Sun, 07 Aug 2011 00:36:32 GMT

Tell us about BB&T Chip program. I've never head of it.

Re: Closing on Monday!

Anonymous — Sun, 07 Aug 2011 01:05:03 GMT

BB&T's CHIP program is kind of like Wells Fargo's Home Opportunities program. You have 2 choices: either 97% or 100% financing. With 97% there is no "magic" credit score. It is a case by case type of thing. You have to have atleast 3 CLs that have been open for atleast 12 months with no lates/delinquencies. They allow you to use non-traditional references such as rent, electric, phone, etc. With 100% financing you must have a minimum score of 660 as well as the other requirements. THERE IS NO PMI with either!!! You have to complete "homebuyers education" (which is just a 1 hr module that you complete online). And there are income limits that vary with the area you are purchasing in. This program is supposed to be for buyers who have mid-moderate incomes. The income limit in my area for 100% financing was 67,000 a year. The income is calculated with every adult over 18 who will be living in the home regardless if they are going to be on the loan or not.

I am not sure if it is offered in every state but I am in NC so if there is anyone looking for a great program here in NC, check it out. It was a blessing for me to find this program. It is saving me nearly $150/month on my mortgage by not having to pay the PMI. It has been smooth sailing as well. I applied and am closing within 30 days.

Re: Closing on Monday!

Booner72 — Sun, 07 Aug 2011 01:34:00 GMT

Congrats! Sounds great!

Re: Closing on Monday!

doublespaces — Sun, 07 Aug 2011 01:34:54 GMT

That sounds awesome... So why doesn't everyone go this route? Could I get this for a 220k home in Arizona?

Re: Closing on Monday!

Anonymous — Sun, 07 Aug 2011 02:28:27 GMT

Doublespaces.....from what I see on BB&T's website the CHIP program IS available in Arizona. The maximum loan is $417,000 in any state so you would probably have a shot at it. Hey, it is worth checking into. If you can meet FHA requirements you would meet the CHIP program's requirements.

Here are the buyer credit qualifications as listed on their website:

1. No 30 day delinquencies within the past 12 months. Derogatory credit must be explained. Collections may not have to be paid but judgements must be paid off.

2. Student loan payments will not be counted in debt as long as payment is deferred for atleast 36 months from loan closing.

3. For 100% financing, minimum credit score of 660. No minimum for 97%.

4. Non-traditional credit sources can be utilized. Must be opened for 12 months. Minimum number is 3 sources of non-traditional credit.

-They only offer 30 year fixed mortgages. Ratios of 33% housing, 41% total debt. Can go up to 45% with 720 credit score and no other debt.

-Minimum buyer contribution of $500. (They count your earnest money deposit as your contribution).

-You can use approved down payment assistance program or gift funds.

If you are buying in a HUD underdeserved area, the income limit is waved.

Re: Closing on Monday!

Anonymous — Sun, 07 Aug 2011 02:30:05 GMT

And to answer your question. I don't think this program is as highly advertised as others. I was originally doing FHA and then my realestate broker recommend this and I could not turn it down. It increased my buying power by about 25,000 because I didn't have to pay the PMI.

Re: Closing on Monday!

Booner72 — Sun, 07 Aug 2011 02:39:15 GMT

The income requirements is the kicker.

Re: Closing on Monday!

Anonymous — Sun, 07 Aug 2011 02:46:20 GMT

Yeah thats the only thing not so good about it. I had to struggle to make mine fit.

Re: Closing on Monday!

Anonymous — Tue, 27 Dec 2011 19:23:07 GMT

Hey Magzamillion, I'm also looking into financing with the CHIP program. Since you've closed have you any hindsight suggestions to share? Did you have to have 2 months reserves for 100% financing? Which credit score did they choose? I have old collections from 6 years ago on my report, but my median score (lender pull) was 671 last month. Would this be a potential problem?

Re: Closing on Monday!

Anonymous — Fri, 30 Dec 2011 19:08:00 GMT

I think you should be ok. I had a median score at about what yours is and went straight through the process with no problems. In order to do 100% you need a median above 660 so you should be fine. Collections on your report only effect you if they are within the last 12 months. The CHIP program wants you to have clean credit for 12 months. Make sure you calculate your income and be prepared. I ended up having to do 97% financing because of the way they calculate income. I think the 100% income cap is like $55,000/year.

And yes, you have to have the 2 months of reserves for 100% financing or 1 month of reserves for 97% financing. I think CHIP is a wonderful program and if you can take advantage of it, DO SO!

Re: Closing on Monday!

Anonymous — Fri, 30 Dec 2011 19:39:55 GMT

Thanks! I have a reputable credit counselor working to remove some old collections from my report via DVing and PFD's. I'm wondering if I should wait until some of those delete so that I may get a better interest rate. Do you know if the interest rate is still based on the credit score?

Re: Closing on Monday!

Anonymous — Fri, 30 Dec 2011 19:41:25 GMT

And my income will fit just fine. I made about 43K this year, but starting 2012 I will recieve bonuses, so I figure I need to take advantage now before my yearly income takes me out of the running for some programs.

Re: Closing on Monday!

Anonymous — Wed, 04 Jan 2012 15:10:19 GMT

Just spoke with the lender at BB&T and she said the credit score requirement has been raised to 680.

Re: Closing on Monday!

Anonymous — Fri, 22 Jun 2012 14:41:25 GMT

I applied for CHIPS and was told that although my credit score is 680, I will have to pay off a charge off from 2007 becasue it was over $200.

Wells Fargo didnt even bat an eye at the charge off but I settled it b/c the upfront costs of FHA are unreal.

Will talk with BB&T monday. Crossing my fingers!