Is anyone familiar with the CRA Program and/or Mortgage Guaranty Insurance Co.?
Question by noname: Is anyone familiar with the CRA Program and/or Mortgage Guaranty Insurance Co.?
I have a FICO score above 800. 1st time home buyer. Putting down 20% for down payment. HSBC bank mentioned I would be a perfect candidate for a program that CRA offers….MGIC. The mortgage consultant of HSBC offered me a lower rate than CHASE & Wells Fargo with 0 points. What is the catch, if any?
I read up on MGIC site. Not sure if I’m understanding it correctly but it seems like if I ever decide to sell the house, the buyer’s bank must also be affiliated to CRA/MGIC or better say, the buyer must also be a candidate for this program which is to be a low income family. Is this correct? Any other things that I should be weary about with this program?
Best answer:
Answer by Ginger
Weary or wary….if you have a score of 800 and 20% down payment you should stay away from anything associated with the CRA program. It appears your home may be in a blighted area if they are even bringing this up….but why limit the eventual buyer of your home to a limited pool? This does not make any sense to me especially since these buyers are extremely difficult to finance and usually manage to come up with a deal breaker such as a defaulted motorcycle loan a week before closing.
Check competitive rates at bankrate.com.
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and/or, anyone, familiar, Guaranty, Insurance, Mortgage, Program