Down Payment Assistance Programs
Down Payment Assistance Programs - Are They For Real?
Yes, there are several programs which offer down payment and closing costs assistance!
Contact your Allied Loan Officer to see which Down Payment Assistance funds may be available in your area. Here are the general guidelines and program types:
A qualified buyer can receive up to $20,000.00, to be used for down payment requirements and closing costs. A deed of trust is recorded and must be paid back when house is sold. There are no monthly payments or interest.
Qualified buyers can receive 3 xs the amount that they choose to contribute to the transaction, maximum funds that can be matched is $5,000.00. A deed of trust is recorded, there are no payments, no interest and it is forgiven after 5 years. The maximum amount of matching funds provided is $15,000, and these funds can be divided up between down payment and closing costs.
Income limits for these 2 programs are:
1 person family - $36,600
2 person family - $41,850
3 person family - $47,050
4 person family - $52,300
Neighborhood Stabilization Program (NSP)
Under this program, qualified buyers may receive up to $25,000.00 for down payment and closing costs. A deed of trust is recorded, there are no payments or interest and is forgiven after 15 years. Buyers must choose a house from a specific list of available homes. Local nonprofit organizations provide the lists.
Income limits for this program are:
1 person family - $54,900
2 person family - $62,774
3 person family - $70,574
4 person family - $78,450
To qualify for the Neighborhood Stabilization Down Payment Assistance program the prospective homebuyer must attend a free eight (8) hour homeowner education class offered in their area. You may ask your Allied Loan Officer to assist you in finding this resource.
The first step is to find out if you qualify for the mortgage loan as well! That is where your Allied Loan Officer comes in. If you fill out the Prequalification form on your selected Allied Loan Officer website, that person can review your current situation and your credit report (if given permission) to see if you meet the minimum requirements for buying a home and for these special programs. In general you will need at least a 640 middle credit score and at least $2,000 in your account or gift funds from a close relative.