Can’t Come Up With A Down Payment to Buy Your Dream Home?
For a few years, just about anyone could get 100% financing on a home (assuming you could document something….). Well, times have changed and so have the popular loan programs. I’m not here to throw down a bunch of ‘Mortgage Talk’, but I want to let you know that there is Down Payment Assistance (a.k.a. DPA) available in Iowa! This is program that will allow you to receive the down payment that ALL loan programs now require from a non-profit program.
Interested? Read on!
What Is Down Payment Assistance?
Down payment assistance is a program that is offered by many non-profit companies. I personally work with a few, so if you need to connect with one – just let me know. With that said, down payment assistance effectively considered a ‘Gift Source’ by the FHA (FHA is one of the top lenders for low down-payment loans). The down payment assistance is given to the buyer at closing. Also at closing, the seller reimburses the non-profit organization from the profit of their home.
Confused? Don’t be.
If you understand how this program works (which I can help you ‘Get It’), you can use down payment assistance to purchase a home with no repayment of those gift funds.
Cool, huh?
How Much Money Can You Get?
Don’t get greedy here. Ok, if you wanted to, you can get up to 6% of the purchase price from the non-profit.
This could apply towards (or completely cover):
- Down Payment
- Closing Costs
- Pre-paid Items (taxes, insurance, etc.)
What’s It Take To Qualify?
- You must qualify for an eligible loan product that allows charitable organizations to provide gift funds.
- There are no reserve requirements (you don’t have to have a bunch of cash in the bank).
- There are no minimum credit score requirements.
Where Do You Sign Up?
This is the painless pitch. I’d like to consider myself an expert on the subject. Each client is different, so advice will vary. Feel free to get in touch with me or you can stalk me.
What Do You Absolutely Need To Know?
- In order to qualify for down payment assistance, you’re lender has to make sure the program you’re using works.
- Your Realtor needs to know how to properly write an offer to request the down payment assistance (again, I can coach ’em)
- You HAVE to know the breakdown of all of the numbers. To the penny. You don’t want to end up at closing unable to write a check or even worse, ask for more Down Payment Assistance than you can actually use.
How Long Will Down Payment Assistance Be Available?
No one knows for sure. The mortgage business has been changing A LOT in the past year. If you’re on the fence, you should talk with a mortgage professional to determine what makes most sense for you. We’re not sure what the future holds, but I have a pretty strong opinion and I’m honest when it comes to measuring risk vs. reward.
What’s The Next Step to Do This?
Talk with a mortgage professional who understands these programs inside and out. Again, if you don’t have the numbers put together correctly – you could have some nasty surprises at closing. With that said, this is a great program if used properly!
Don’t wait, just make the call.
