Support for upscale home buyingNovember 6, 2007
Median-priced homes in many desirable metropolitan markets are approaching the half-million-dollar mark, so even people with six-figure salaries are feeling challenged when buying a home. While these buyers may have access to a comfortable amount of cash for a down payment, it may not be enough to purchase the high-end home or upscale urban apartment they really want.
A recent article published by MSN Money reports that new programs are providing assistance for borrowers whose yearly income places them in the top 10 percent of American wage earners. For example, there is the Phoenix Realty Group in Los Angeles and San Diego, who are investing $190 million to build housing for families who earn up to 200% of the median income. There is the Neighborhood Assistance Corporation of America (NACA), which started as a nonprofit housing advocacy corporation and now operates a $10 billion mortgage lending program. NACA offers homebuyers no-money-down loans with interest rates a point or more below prime. Borrowers pay no closing costs, points or private mortgage insurance, and there are no income restrictions to qualify for the program.
Ask your mortgage broker about programs available in your area.