First Time Homebuyers Loan Program

Becoming a homeowner is still seen as the American Dream.  However, being a first-time home buyer can be a frustrating situation.  Traditional mortgages require high down payments and can be fairly difficult to qualify for.

The following is a proposal for Hertford Savings Bank, SSB to establish a loan program for First Time Homebuyers in our surrounding communities.

Proposed name of program:  Hertford Savings Bank First Time Homeownership Program

Loan Program Guidelines

  • Loan amount not to exceed $250,000
  • Maximum financing up to 95% with no PMI
  • Minimum down payment 5% (down payment can be gifted)
  • Minimum buyer contribution $500.00, must show they have their own funds
  • Ratios:  33% housing, 41% total debt.  Can go up to 45% if no other debt
  • Property: Single Family residence, townhouse or condo
  • Closing cost can be gifted or seller paid
  • Affordable mortgage rate:  .25% below current 30-year fixed rate with 1% origination fee
  • Escrows for taxes and insurance required through life of loan
  • Home must be move in ready with no repairs needed.  (If repairs are needed, must be completed by seller before closing).
  • Borrower must not have owned a home within the past 3 years

Buyer Credit Qualifications

  • 2 years employment or copy of college transcript with one-year employment with the same employer
  • Student loans will not be counted in debt as long as payment is deferred at least 36 months
  • Non-traditional credit sources can be utilized.  Must be opened and maintained for 12 months.
  • No 30-day delinquencies within the past 12 months.  Derogatory credit must be explained.  Collections must be paid off.