In my research, I found that this might be helpful for some (including my own personal refinance). The catch is that the rate is a bit higher, it's only available in CA, OR, and WA, and the rate/LTV requirement varies by county. For example, in Orange County, CA, the rate as of 8/30/12 ranges from 4.375% with no points to 3.875 with 2 points for up to 90% LTV. The rate is .25% lower in LA county, and can be up to 95% LTV. Again, there is no PMI in either case.Economic Opportunity MortgageReview of EOM--------------------Economic Opportunity MortgageDesigned for low- to moderate-income households, or homeowners purchasing or refinancing a property in a qualifying census area, our Economic Opportunity Mortgage (EOM) helps make home ownership more affordable. With reduced interest rates and no points required, an EOM is a low-income home loan that provides lower monthly payments than traditional loan programs1 for eligible properties, including a:- Single-family residence
- One- to four-unit property
- Manufactured homeLower Up-front Costs and Loan-to-value RatioWith an EOM, you can:- Purchase a home and get up to 95 percent financing
- Refinance and get up to 95 percent financing with no cash out or up to 80 percent financing with cash out
- Save with a lower origination fee than traditional mortgages
- Avoid private mortgage insurance (PMI) requirements with a down payment as low as 5 percentLimited Credit History Considered
With Union Bank's low-income home loan programs, we consider your entire credit report, such as utility and rent payments, when making a decision on your loan.Do You Qualify?
You may qualify for the EOM program if you meet one of these two requirements:- Your property is located within a designated census area
- Your annual household income falls below 120 percent of the median income if the property is located within CA, below 120 percent in certain counties in OR and WA, or below 80 percent in the remaining counties in OR and WATo learn more about our EOM low-income home loan programs and other mortgage options
for first-time buyers, speak with a Union Bank Mortgage Consultant today.--------------------My personal situation is that I'm currently paying 6.125%, and am under water. My parents have offered to loan me money to buy my mortgage down to refinance. I like the idea of buying it down to 90% versus 80%, and therefore borrowing less money from them. I'd like to hear your thoughts, and hope there's more pros than cons and jokes.I'm very sorry if this has already been posted. I searched and couldn't find it.