Understanding Down Payment & Closing Cost Assistance

Purchasing your first home is one of the best investments in your future. Today, home buyers and their families face a “perfect storm” – down payment and closing cost are climbing, the economy is weakening, and credit is tightening. Figuring out how to save for purchasing a home is more challenging than ever before. But one thing hasn’t changed, the time associated with figuring out all the federal & state down payment assistance & closing cost programs available, and the mortgage underwriting guidelines that determine down payment and/or closing cost assistance that is acceptable to the lenders.

As recently as Dec. 1, 2009, Fannie Mae-Federal National Mortgage Association, one of the largest funding sources for home mortgages announced, effective Dec. 12, 2009 that homebuyers with less than a 620 credit score could not borrower more than 80% of their purchase price, which would mean borrowers would need to put down 20% or more to qualify.

Sadly, many homebuyers don't know about all the available down payment and closing cost alternatives that are available, in part because of they rush through the home buying process and don’t take the time needed to educate them selves. We believe most home buyers who know their options would chose to slow the home buying process down a few weeks or even months if they knew they could get access or structure their home purchase while reducing their total housing payments and the amount of money needed to purchase their new home.

Fortunately, if you’re reading this you have an opportunity to take advantage of this information. Filing your DAP-Application form is the first step in finding out how to save and access any and all down payment and closing cost which may be available. Not all states and/or the federal government will provide down payment assistance, nor are there any guarantees that you will be approved for an down payment assistance or closings cost programs if you chose to apply using our service. Down payment and closing cost assistance can come in many difference ways. Our process will first identify any state or government down payment assistance in the form of GRANTS (Non repayable form of assistance)(Not often made available), then it will identify any other programs or sources as follows: LOANS (forgivable and non-forgivable loans) (Some non-profit requirements may disqualify this type of down payment assistance) (sometimes this will be available and other times it will not), SELLER CREDIT (This is most often available but must be agreed upon by the seller and can be as high as 6 percent in most cases, certain restrictions apply.)(Also, most programs require at least 3.5% of the purchases own funds prior to accessing any form of down payment or closing cost assistance.), GIFT Funds-(are non repayable forms of down payment or closing cost assistance, certain restrictions apply such as source of gifting entities and/or persons. Persons and/or entities involved in the transaction will not be a qualified source of any gift. Gift donors, in most cases, must be related to the borrower(s). MATCHING-These unique programs made available to our clients are designed to support borrowers with getting the support needed from friends, families and employers to access sufficient funds needed to make up at least 3.5% of the initial down payment. We can help.

We are not affiliated with the U.S. Department of Housing, its website (www.Hud.gov), or any other state or federal agency.