The housing market is tough out there, I know! Especially when it seems that you are getting priced out of neighborhoods on a monthly basis. From my last article on appreciation in my BeLa area, you know that now is a great time to buy. However, it can be difficult to get the down payment together and find a good loan before you miss out on a property. Citibank has a program that can help you out with all of this.
Author’s note: I used this program to purchase a house that I wouldn’t have been able to normally, but I am in no way affiliated with Citibank nor am I receiving any recompense by writing this article.
Perk #1 – No Income Requirement
While many banks have similar programs, they require you to make under “X” amount of dollars. This can hinder us in the NYC area as we might be making close to (or over) six figures, but still can’t afford a large down payment. Citibank is the only one I know about that wants good earners to move into these areas. Frequently, those are the ones that want to and will spend money in the neighborhood. With Citibank’s program, for loans on properties located in certain HUD designated Low-to-Moderate-income areas, there are no income limits.
Perk #2 – Only 3% Needed for Down Payment
With rising housing costs as well as record debts, many people think that there’s no way they can save up 20% or even 10% for a down payment. With this program, you would only need to have 3% available. For a $500,000 house, that is $15,000. Yes, it’s still something but it would be $100,000 if you had to put 20% down.
Perk #3 – No Mortgage Insurance
This one was huge for us! For many loans where they are only asking for 3%, you must pay mortgage insurance or PMI. Typically PMI is 0.5% – 1% of the entire loan amount, annually. So if your loan was for $385,000, you could be paying $3,850 per year or $320 per month on top of your mortgage. And that doesn’t go into any equity towards your house. For all intents and purposes, it disappears into thin air. Without that extra $320/month, you can look at homes that are priced higher than you could have afforded previously.
“We continue to look for innovative ways to help support home buying for low- to moderate-income consumers. Our Home Run program helps us fulfill that goal by accommodating home buyers who may lack a traditional down payment.” – Heather Battaglia, Senior Vice President, Citi Strategic Markets.
If you are interested in learning more about this program, please visit a local Citibank branch, call 877-287-1433, or click here.
You can also message me personally and I will give you the name and number of the agent that handled our mortgage.
