- There are several types of down payment assistant programs available and they are not offered through every lender.
- Some down payment assistant loans are forgivable over time while others must be paid in full upon the sale of the home or refinance.
- Down payment assistance is secured by a second mortgage lien and does not have any interest accrual or payments owed while the loan is in existence.
- Down payment amounts range in the amount of $5,000 to $15,000.
- Occasionally, down payment assistance entities run out of money during the year and are not funded again until the next year.
- Down payment assistance programs are available for owner occupied homes. Investment properties and/or second homes do not qualify for down payment assistance.
- There are income limitations for each type of down payment assistance and the income limitations include total household income.
- Most down payment programs require a minimum contribution of $1,000 from the Borrower.
- Property condition needs to be an important consideration when pursuing down payment assistance.
- It takes longer to close a loan with down payment assistance.
- The credit requirements for down payment assistance are set by the first mortgage loan parameters.
- It is important to work with a loan officer who has experience with down payment assistance.
- Homebuyer education is required for all down payment assistance programs.
RSS Feed