Affordable Loans

House America® Loans

With the goal of making homeownership more affordable, Countrywide’s House America® loan program includes special features that can be attractive to individuals and families that do not fit within traditional loan guidelines. There is also flexibility when it comes to sources of income, assets, and the items in a credit history.

The flexible features of the House America loan program were designed to help qualified borrowers address many of the traditional barriers to homeownership:¹

• Credit History. The program can consider monthly rent and utilities payments to establish a favorable credit history.
• Income and Assets. The program can consider income from multiple jobs, extra income from jobs such as child care, cleaning services, home repair and maintenance, rent paid by a live-in boarder, and personal savings not held in a traditional banking account.
• Debts and Other Bills. The program is designed to help people who may use a higher than average amount of their monthly income to pay living expenses and debt.
• Home Loan Payments. There are a variety of repayment schedules available with this program.

Other attractive features include options for having immediate family members (parents, children or siblings) help each other buy a home of their own. The House America® Loan Program can be a great financing solution for home buyers.

¹ Landlord Education is required for all 2-4 unit properties.  Landlord education offered at no cost through the House America Counseling Center.  Some Special Features cannot be combined. Maximum income restrictions may apply in your area.  Ask for details.

FHA Loans

What is an FHA Loan?
Many people think that they have to get an FHA Loan through the Federal Housing Administration. However, the Federal Housing Administration does not provide FHA loans; they simply guarantee or insure the loans.  FHA loans are often referred to as government-insured loans or government loans. To get an FHA loan, you apply through an approved lender like Countrywide.

FHA loans have features that can make them easier for first-time home buyers to qualify such as lower down payments and flexible lending guidelines.

More specific features include;

• Low down payment (usually 3% of the FHA appraisal value or the purchase price, whichever is lower)
• No maximum income/earning limitations
• Fixed rate and ARM loans available
• Insurance from the federal government replaces private mortgage insurance
• Maximum loan amounts vary by county — ask for information on your county

Who can qualify for an FHA Loan?
An FHA Loan could be the ideal solution for some homebuyers, especially if one or more of the following apply:

• First-time homebuyer
• Not a lot of money to put down on a house
• Low monthly payments are important
• Non traditional employment or credit history

There are also eligibility requirements for the property. Other restrictions apply. Properties that are eligible for an FHA loan include single-family homes, 2-4 unit properties, condominiums, and manufactured homes.

VA Loans

What is a VA Loan?

A VA loan is guaranteed by the Department of Veterans Affairs (VA). VA loans are offered through an approved lender such as Countrywide. These loans have features that can make them easier for qualified veterans to obtain. These features include:

• Up to $799,000 for veterans with full entitlement
• Fixed rate with 10–30 year loan terms
• More flexible income, employment and savings requirements.

Who can qualify for a VA Loan?
Any veteran who served in the active military, naval or air service, who was discharged or released from active duty under conditions other than dishonorable. Active service members may also be eligible.

There are also eligibility requirements for the property. Other restrictions apply. Properties that are eligible for a VA loan include single-family homes, VA-approved condos, PUDs (Planned Unit Developments) or 2-4 unit properties.

Reverse Mortgages

What is a reverse mortgage?
A reverse mortgage enables homeowners aged 62 and over to convert part of their home equity into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is reversed. Instead of making monthly payments to Countrywide, as with a regular mortgage, Countrywide makes payments to the homeowner. 

Benefits of a Reverse Mortgage

• No monthly payments
• No income or health qualifications
• Homeowners may use the cash for any purpose
• Neither the homeowners nor their heirs will owe more than the home’s appraised market value at the maturity of the loan
• The loan is not due until the last homeowner sells or permanently leaves the home
• Homeowners can receive the cash in a way that suits their financial situation – lump sum, line or credit, monthly payments, or a combination of any of these

How do I qualify?
Contact your Countrywide loan officer for details.  There are no income or health requirements, and only minimal credit requirements to qualify. All homeowners must be at least age 62.

How much can I qualify for?
The amount of the reverse mortgage benefit for which a homeowner qualifies is determined by three factors:

• Homeowner age (all homeowners must be at least age 62)
• Current appraised value of the home
• Current interest rate

For more information, contact your Countrywide home loan consultant.  Reverse mortgages from Countrywide are funded and administered by Countrywide Bank, FSB.

Home Equity Loans
A home equity loan could be the ideal solution for home improvements, a renovation or remodel. A home equity loan is obtained by accessing  the available equity in your property.

Home Equity Lines of Credit (HELOCs)

A Home Equity Line of Credit (HELOC) is a  line of credit that can be obtained by qualified borrowers who want to access the available equity in their  home Countrywide’s HELOCs feature an adjustable interest rate based on the Prime Rate, often with lower interest rates than typical credit cards.  Once a borrower’s HELOC is approved, they also receive a checkbook from which to draw funds. Countrywide also offers a Countrywide EquitySmartSM MasterCard® Card, which  can be used to draw funds from the HELOC (Minimum draw applies. Not available in all states). 

Benefits of a HELOC?

• A line of credit – homeowners take as much or as little of their line at closing as they wish, up to the full amount of the line of credit
• Renewable source of funds - pay down principal and re-use (during draw period)
• Can be used as a “safety net” for future cash needs
• Flexible repayment terms – pay interest only, fully amortizing, or any amount above interest only during the 5 or 10-year draw period

HELOCS feature the following benefits:

•  Money can be used for any purpose
•  A valuable financial planning tool
•  Potential tax deductibility of interest paid (check with your tax advisor)
•  Often allow larger credit limits, lower interest rates and lower monthly payments than most other forms of consumer credit¹

Here are some ways people choose to use their funds...

• Home renovation
• Landscaping
• College tuition
• Debt consolidation
• Automobile purchase
• Investments
• Vacations

¹ Taking out a home equity line of credit may increase the total number of monthly payments and/or the total amount paid when compared to your current situation.

Construction Loans/One-Time-Close (OTC) Program

Countrywide’s One-Time-Close construction to permanent loan programs provide financing for construction and conversion to the permanent loan in one transaction.  Now qualified borrowers don’t have to apply and be approved for a construction loan to build that new dream home, then apply and be approved for a second, permanent loan when the home is complete. 

Qualified homebuyers can:

• Save time and money with one loan transaction for both construction and permanent financing; one application, one closing and one set of closing costs.
• Finance closing costs and construction phase payments.
• Include the purchase of land, plans and permits in the loan amount.
• Finance eligible renovation/rehabilitation projects.