First-Time Homebuyer Down Payment Assistance
This blog will cover the down payment assistance for first-time homebuyers’ mortgage programs available at FHA Bad Credit Lenders. FHA Bad Credit Lenders is constantly expanding our portfolio of loan products to help fit the needs of our clients. As we approach 2024, we see real estate prices steadily climbing.Â
Many experts predict a value crash is coming in the future, but homes hold high values for now. With higher values, buyers need to increase down payments. The down payment can be the hardest hurdle to overcome to achieve homeownership. Many areas of our country, such as Dallas, Denver, Los Angeles, and San Francisco (among many others), have home values currently through the roof. This makes it difficult for families to buy a home
You put them in an endless cycle of paying rent and not building equity. I am sure many of you reading this article are sick of making your landlord rich! Our goal is to help you change that. Please see our RENTING VS BUYING blog. We are happy to re-introduce our down payment assistance program, which is back up and running.
What Is Down Payment Assistance?
Down payment assistance is exactly what it sounds like; it is a specialty loan program that helps you pay all or a portion of your down payment and closing costs. Buying a home in the year 2023 is quite expensive. Not only do you need a down payment, you also need closing costs.
Ee will detail how this down payment assistance program works, a few of the eligibility requirements, and how to apply for the down payment assistance program. Down Payment Assistance Mortgage Programs for first-time homebuyers at FHA Bad Credit Lenders is one of the best and most popular DPA mortgage programs in the nation.Â
Closing costs include lender fees, title costs, escrows, and state and local taxes. An average closing cost can cost between 2% and 5% of the purchase price. This can add up quickly, especially when your main concern is saving for a down payment. This is when down payment assistance can help you and your family.Â
2% Down Payment Assistance Grant For the Down Payment
We are excited to have the 2% down payment Grant program available again. This program is available in most states besides Washington and Hawaii. This 2% Grant comes from an approved government entity that allows you to purchase a home with an FHA loan and receive 2% of the purchase price as a down payment assistance grant. This is a GRANT meaning no repayment is needed!Â
Underwriting Guidelines And Requirements
Underwriting requirements. 580 Credit score or higher. AUS Approve/ Eligible ONLY (see AUS BLOG for more details). MAX LTV is 96.5%. MAX DTI is 48.99% (DPA overlay). Available in 20, 25, and 30-year FIXED RATE terms.
Who can use this 2% Grant? For the most part, anybody can use this loan product. This program is designed for first-time homebuyers, current or retired public servants, volunteers or non-paid staff members for certain organizations, and lower-income families.
Eligibility Requirements For The 2% Down Payment Assistance Grant
Below are a few criteria that must be met to use this 2% Grant. The 2% grant must be used to purchase a primary residence. This grant is not available for investment properties or second homes. Available to any first-time home buyer or person with no ownership interest in a property in the previous three years.
Income Cap Mortgage Guidelines To Become Eligible For DPA
Any borrower whose income is equal to or less than 140% of the county’s medium average. Regardless of family size based upon the state or county where the subject property is located. To determine your area’s income limits, please visit the FANNIE MAE HOME READY INCOME LIMIT LOOKUP TOOL.
Homes For Heroes DPA Mortgage Programs
The 2% grant is also available to any First Responders (including police officers, firefighters, Public Safety officers, paramedics, emergency medical technicians, and even volunteer fire department staff), Educators, Medical Personnel (nurses, doctors, phlebotomists, Health ambassadors, or any Hospital worker), Civil Servants at the federal, state, or local level, and any Military Personnel. The program is also available to volunteers. Anybody who has volunteered for charity is eligible for this program. Please call us for more specifics.
