You’ve probably heard of HAMP, otherwise known as the Home Affordable Modification Program, which was very popular post-housing crisis.
But what about AMP? Probably not. It stands for “Affordable Mortgage Program,” and is the loan program offered by Synovus Mortgage Corp. (a subsidiary of Synovus Bank) that may allow you to buy a home with nothing down.
If you happen to reside in Alabama, Florida, Georgia, South Carolina and Tennessee, you may want to look into Synovus Mortgage’s AMP if you have little set aside for a down payment on a home.
While you’re at it, you can also look into crowdfunding your down payment…
Anyway, the company just announced that they had committed $100 million to AMP for first-time home buyers and others in need of financial assistance when purchasing a primary residence.
In a press release, Synovus Mortgage Corp. director of residential mortgage Steve Shoemaker commented on the flexibility of AMP, noting that it has “the ability to layer on down payment assistance programs.”
Per their website that explains the program to some degree, this seems to mean using state bond programs and federal agency assistance, along with AMP’s flexible qualifying guidelines, to purchase a home with no down payment.
As expected, there are a lot of rules involved, and not everyone will qualify for 100% financing.
For one, the property has to be a primary residence (no second homes or investments), though it can be a single-family residence, condo, or townhome.
Second, the borrower must complete pre-purchase homeownership counseling, and a fee does apply for the course. However, it’s probably nominal.
Additionally, the max loan amount is $424,100, which is the conforming loan limit, meaning it’s a program backed by Fannie Mae and Freddie Mac.
Per Shoemaker, it may be possible to qualify with a credit score as low as 620, though you should always shoot for higher to obtain a lower mortgage rate.
It seems you can only get a fixed-rate mortgage, though it’s possible other loan types are also permitted.
You must also open an impound account to allow the lender to collect property taxes and homeowners insurance on a monthly basis, which is common for high-LTV lending.
The good news is private mortgage insurance isn’t required, though as I always say, if the LTV is above 80%, you’re paying mortgage insurance, whether explicitly or through a higher interest rate and/or fees.
There’s also the bit about being a first-time buyer or at least a borrower “who may require assistance,” so there could be an income limit as well.
In any case, it’s yet another potential zero down option for borrowers in the states of Alabama, Florida, Georgia, South Carolina and Tennessee who lack down payment funds.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
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