Forgivable Down Payment Assistance Helps Our Clients Succeed at the Mortgage Desk
Saving for a down payment is difficult, especially for first-time homebuyers. It’s such a tall task that some people never dive into homeownership. Don’t all hardworking people deserve a chance to have a home of their own?
At MortgageDepot, we think so! That’s why we have access to a forgivable down payment assistance program to help our valued clients achieve their real estate goals.
Program Highlights
What does forgivable mean? Would you believe us if we told you that this program is a grant, meaning when all is said and done, you don’t need to pay the money back? It’s true! Here are a few additional program highlights that you need to know:
- This program contributes either 2% or 3.5% of the home’s purchase price to your down payment, depending on your eligibility.
- The funds can be combined with up to 6% in seller concessions at closing.
- No resale restrictions apply in this program.
Qualifying for Forgivable Down Payment Assistance
To qualify for this down payment assistance program, you must meet at least one of the following requirements:
- First-time homebuyer
- Current, retired, paid, or volunteer employee of select occupations
- Income less than 140% of the area median income
- Subject property located in an underserved census tract
Here are additional eligibility requirements that will put you one step closer to down payment assistance:
- You must have a FICO score of at least 620.
- The LTV cannot exceed 96.5%.
- This program only applies to primary residence purchases. Second homes and refinances are not eligible.
- This program is available as a part of a 30-year fixed mortgage.
- Manual underwrites are not permitted.
Eligible Property Types
In addition to the eligibility requirements listed above, the borrower can only use the down payment assistance funds to purchase certain property types. Here is a list of properties that qualify:
- One- or two-unit primary residences
- Certain types of manufactured housing
- FHA– or HRAP-approved condos
- PUDs
Maximizing Affordability for First-Time Homebuyers
Depending on your needs, this down payment assistance program can be used with certain FHA programs to help you reach your real estate goals without financial hardship. Here’s a list of eligible programs:
- FHA Standard 203(k)
- FHA Limited 203(k)
- FHA 203(b)
- FHA Repair Escrow
You cannot use this down payment assistance program with non-FHA loans, other down payment assistance programs, high-balance loans, or under other conditions as specified by your mortgage broker.
Contact Us Today!
We understand how difficult it is to enter the real estate market. We know you need all the help you can get when you’re trying to collect a down payment that makes a difference! Contact us today to see if you qualify for forgivable down payment assistance.
Connect with one of our loan consultants for more information.
