Affordable 100 Home Loan Program

Adobe Flash Player not installed or older than 9.0.115!

Listen to Mike's interview on NPR Radio regarding the Affordable 100 Loan Program

If you are looking for information on the Affordable 100 offered thru Sunstate Home Loans you've landed in the right place.

I have been helping families and individuals with the affordable housing since 1990. I get a lot of questions from home buyers and realtors so I thought I would create this website as a reference and resource to help educate you on the benefits of purchasing a home thru the Affordable 100 Program.

Take a look around - I have provided you with basic

Credit Guidelines - Income Limits - Property Requirements

Hopefully this will help you with your decision to buy a home, learn of the benefits available to you thru the Affordable 100 and help you make an educated and informed choice about the loan options available to you when purchasing a home.

Affordable 100 - Exactly what areas are eligible?

To see whether a property is eligible for financing under the Affordable 100 please complete the "eligibility form" below:

Are you eligible for the Affordable 100 Home loan?

To be eligible for an Affordable 100 home Loan you must meet the following basic requirements:

Be a U.S. citizen, qualified alien, or be legally admitted to the United States for permanent residence.

Have an adequate and dependable income that does not exceed the moderate income limit established for the area. Click here for income guideline.(second form)

Have a credit history that indicates a reasonable willingness to meet obligations as they become due. The minimum credit score requirement is 580.

Have a repayment ability based on the Affordable 100 Home Loan qualifying ratios.

Not already own a home.

Unable to secure traditional financing without the help of the Affordble 100 Home Loan Program. **Specifically meaning you do not have 20% Down Payment.

Affordable 100 Home loans Help People buy homes in Arizona.

Affordable 100 Home Loans are a great resource for the first time home buyer as well as move up buyers who have less than 20% to put down on a home.

As mortgage lenders are forced to limit available credit and tighten eligibility criteria, Affordable 100 wants you know they still have affordable options available if you want to own a home.

There is still hope out there for people who do not have 20 percent to put down on a conventional loan. The mortgage industry is tightening its belt but Sun State Home Loans has not changed anything. We have funding available and we really want to help Americans get into a home of their own.

What is a Affordable 100 Home Loan?

Here are the highlights.

* No Down Payment Required!
* No Monthly Mortgage Insurance!
* Cash Reserves not required!
* Closing costs can be financed or paid by the seller!
* Flexible Credit Guidelines

So what does all that really mean. Let's break it down.

No Down Payment - Nothing required, Zero, Zip, Nada!

No Monthly Mortgage Insurance - Lower monthly payment.

No Cash Reserves - Some loan programs require a certain number of months payment in your bank accounts to fall back on.

Closing costs can be financed. With a Affordable 100 Home Loan we can finance the closing costs up to the appraised value of the home. For example:

* Purchase Price $100,000
* Appraised Value $105,000
* Closing Costs $3,000 (estimate only)

On the above scenario we would be able to finance $103,000. The purchase price plus the closing costs. This is very helpful to you when negotiating the purchase price with the seller.

Flexible Credit Guidelines - There are no minimum credit score guidelines, however scores below 620 do require a more stringent review.

There is still hope out there for people who do not have the funds available for a down payment. As more and more mortgage lenders are forced to tighten and limit their credit guidelines the availability of the Affordable Home Loan makes the reality of owning a home available to a much larger percentage of americans.

If you have questions or need assistance you can contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Affordable Home loan - Property Requirements

With a Affordable 100 Home Loan you can purchase a new or existing home that you intend to live in. It is available to help families buy a home with No Down Payment in Designated Areas.

While most homes will qualify for this program - there are a few items you should be aware of to avoid any surprises down the road.

* You must occupy the home. (No Rental Properties)
* The home may not be located in a Flood Zone.
* The home may not be used for income producing purposes. (Farm, Rental,etc)
* Streets & Roads should be paved, but can have an all weather surface such as gravel if it is typical for the area.
* The property may not be subdivided.
* If the home is on a larger piece of land such as acreage than the value of the land cannot be more that 30% of the total value.

Last but not least: The home may not be on the Historical Homes Register. This again is not something that happens often but we have seen it. If the home is 50 years or older then Sun State Home Loans must get this information from the State Historic Preservation Office. This can take a while and may delay your closing if you are not aware of it from the start.

There you have it! You can buy a nice home with No Down Payment, a Lower Monthly Payment and save a ton of money.

You can apply for a Affordable 100 Home Loan here. Never assume that you or the home you would like to purchase will not be eligible for a Affordable 100 Home Loan.

Affordable 100 Home Loan - Income Limits

The Affordable 100 Home Loan income limits in Arizona are not that bad. The limits vary per County and the number of people living in the household. We are allowed to deduct $480 per child, annual child care expenses and $400 for elderly or disabled persons from the gross income.

For example:

Family of 4 - Mom, Dad, child age 14 and child age 6.

Gross annual income before any deductions is $91,000. The Income limit for many counties is $88,400. Let's assume the 14 year old no longer requires childcare but the 6 year old goes to an after school daycare program during the school year and full time during the summer.

* Gross Income $91,000
* Deduct $480 for 14 year old
* Deduct $3,900 child care for 6 year old
* This brings our income to $86,620 which is below the County Limit of $88,400.

That's great news! This family meets the income guidelines.

Check your income eligibility by filling out this quick form below:

Affordable 100 Home loans - Eligible Income

Before we determine if you meet the Income Limits we need to determine your annual income. Affordable income determinations are based on your current and projected income. If it is difficult to determine the current projected income we are allowed to use an average of the previous 12 months.

The types of income that may be considered include:

Current verified income from full or part-time employment including

* Seasonal work
* Commissions
* Overtime
* Bonuses
* Unemployment compensation
* Tips
* Car Allowances

Other types of income we may consider include:

* Social Security Income
* VA Benefits
* Disability Income
* Retirement Income
* Interest & Dividends
* Alimony & Child Support

When calculating your income for a Affordable 100 Home Loan we always use your Gross Income before any deductions for payroll taxes or employee benefit programs. Since the Affordable 100 Home Loan has the Income Limits it is very important to make sure your income is determined correctly and we are able to fully document where the income is coming from and how it is paid to you and that it will continue to be paid.

Of course there are other types of income that people receive and there are also types of income that we are not able to use such as Foster Care.

Affordable Home Loans - Credit Score Requirements

Currently there is a minimum credit score requirement of 580, however scores below 620 may require a more stringent review of the credit history along with documentation to support the lower credit scores.

This review would require looking at the most recent 12 months rental history. Possibly providing a written explanation regarding the lower credit scores. This letter is very common and is written to establish your intent for good credit. The letter should explain the reasons behind any negative items on your credit report as well as explain that the circumstances surrounding these items were temporary, beyond your control and you have started and/or made progress towards correcting them.

Items such as medical collections, a missed payment or perhaps you were layed off for a short time, had an illness or death in the family. These are very common and it is understandable that people have things in their lives that can effect their finances and credit history.

That is one of the great things about the Affordable Home Loan - it is what we like to call "make sense" underwriting.

On the flip side scores 620 and above are considered to be a good score and in some cases may allow for a few dings such as a late payment or owing collection on your credit with no review at all. So lets get started!