Say Goodbye to seller paid down payment assistance!
Effective
What Is Down Payment Assistance?
Down payment assistance is a program that is offered by a few select non-profit companies. We used two in particular in our office. Down payment assistance effectively considered a ‘Gift Source’ by the FHA (FHA is one of the largest mortgage insurers). The down payment assistance is given to the buyer at closing. At closing, the seller reimburses the non-profit organization from the profit of their home including a small admin. fee.
How Much Money Could You Get?
The FHA loan program allowed up to 6% of the purchase price from the non-profit.
This could apply towards (or completely cover):
- Down Payment
- Closing Costs
- Pre-paid escrowed Items (taxes, insurance, etc.)
President Bush signed the Housing and Economic Recovery Act of 2008 making private down payment assistance (DPA) programs no longer available.
What does this mean to you?
If you or someone you know is interested in purchasing a home with little or no money down, the deadline to find a home and close is
100% loans are already gone. This could be the last chance to buy a home without the minimum 3% or 5% down payment.
As of right now down payment assistance programs (DPA) in FHA loans are currently the only true “zero-down” mortgage option for home buyers, as the conventional market has shifted to requiring at least 5% investment from the borrower. Well, the day has come. As part of the forthcoming congressional housing stimulus package, DPA will be gone as of October of this year. American consumers now really, truly, honestly, legitimately, must again compile a sizable nest egg to finance the purchase of a home.
If you are considering buying a home in the next 4-6 weeks I encourage you to take advantage of this program and call me direct at
Written by Lisa Kratz Apex Mortgage | Meridian, Idaho
| (208) 888-9251 | myIdahoHomeLoan.com
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