Getting Down Payment Assistance to Buy a Home [2022]

 

[2022] Homeownership is within your reach! Now is the best time to learn about adding down payment assistance (DPA) for qualified borrowers who have good ratios and decent credit but lack funds to purchase a home. There are more DPA programs available now for FHA, conventional, USDA and VA loan products than ever before. The best reason to know about these programs is that DPA funds can cover your down payment and usually a good amount of the closing costs that sellers aren’t willing to pay in today's heated housing market. This makes buyers with DPA more competitive than buyers who need closing costs covered.   But DPA programs don’t come without challenges. Often, a DPA issue can arise during the processing of a loan and if the 2nd mortgage for DPA funds cannot be approved, the only remedy to complete the deal may be a gift at the last minute.   Some of what you should be aware of...   In comparing FHA 96.5%LTV and conventional 97%LTV loan programs with DPA added, we found that when a borrower’s credit score is over 700, the combined conventional mortgage payment is usually lower than the combined FHA payment due to lower private mortgage insurance (PMI). The closing costs compared were just slightly higher for the conventional loan. Borrowers who need DPA to help with home purchase costs need to have funds in the bank. For borrowers who have lower credit scores and are tight or slightly over on the front FHA ratio, one to two months of reserves may be needed to get the loan approved through automated underwriting required for many programs. This is because the higher combined loan to value (CLTV) of the first and 2nd DPA mortgage poses a greater risk.  Be careful ...  Some programs income criteria call for area median income (AMI) that clients need to qualify for with each DPA. Some programs require that only the income of the borrower applying for the loan should be analyzed, while other programs require household income for all members of the family to be used. Know your geographic area ... some DPA programs can provide funds for on a home purchase only within a certain area. Community Reinvestment Act (CRA) DPA funds are available for home purchases within a mapped area.  Make you you check this out. There may be program differences for different property types, such as a manufactured home versus a single-family residence (SFR).  On any DPA program, always ask your lender UPFRONT if there are any overlays or unique underwriting criteria for the specific program. Know that sometimes the 2nd mortgage payment will need to be included in qualifying debt ratios. The BEST TOOLS to have in your toolbox when looking for DPA: For a fee, check out Down Payment Connect to see if you are eligible for DPA! Within Down Payment Connect, you get an incredibly detailed program overview of over 2000 county, city and state DPA programs and many proprietary programs across the U.S.   As you can see there are a lot of details to put in order to better utilize DPA programs for your home purchase.  If we can assist you, please contact us at aundreabeach.com or call us at 702-326-7866.

Down Payment Assistance

Hope Brings You Home - Down Payment Assistance (Updated for 2020)

HOPE BRINGS YOU HOME - Updated for 2020

Hope Brings You Home is a new down payment assistance (DPA) program available to most of Southern Nevada that focuses on areas still considered distressed from the housing crisis. The first come first serves program will provide funds until the $17.9 million of funds is depleted.  Nevada Affordable Housing Assistance Corp. (NAHAC) administer of the Nevada Hardest Hit Funds has partnered with Nevada Housing Division (NHD) to administer the Hope Brings You Home program and make the funds available to Nevadans.

HIGHLIGHTS:

•DPA equal to 10% of the purchase price up to $20,000 for down payment and/or closing costs

•Maximum purchase price $400,000 (remember to check Agency limits)

•FHA/VA Income Limit: $98,500 and CONV Income Limit $54,240 Clark County
For the purpose of this program, a borrower (s) gross income must be used in determining eligibility. Gross income includes annual wages, commissions, bonuses, self-employment net income (plus depreciation) dividends, interest, annuities, pensions, child support alimony and public assistance.

•Minimum credit score FHA 660 – VA/CONV 640

•Maximum debt ratio 45%

•Non-Purchasing Spouse is NOT permitted under this program. Married individuals must apply jointly.

•Co-signers and Non-Occupant Co-borrowers are NOT permitted under this program.

•Borrower(s) cannot own other real property at the time of close.

•Eligible Properties: Existing single-family properties including townhomes and condos. Manufactured homes and new construction are NOT eligible

•Homebuyer Education is required

•DPA is in the form of a no interest, no payment prorated 3-year forgivable note.

This information is meant to show program highlights. For underwriting criteria please see the Home Is Possible Administrative Guidelines.

Hope Brings You Home - Eligible Zip Codes

*Home Brings You Home available only in the following zip codes: 89030, 89048, 89060, 89101, 89102, 89103, 89104, 89106, 89107, 89108, 89109, 89110, 89115, 89119, 89120, 89121, 89122, 89146, 89156, 89169

The first step is to get pre-approved and get out house hunting.  The DPA funds are limited and cannot be reserved until you are in contract.

Apply online if you'd like www.iLendLasVegas.com 

Reach out, we are here to help!

Aundrea Beach-Greco
Mortgage Advisor, CMPS
702-326-7866
info@aundreabeach.com

Top 5 Down Payment Myths Debunked

Top 5 down payment myths debunked

More markets are looking at affordable housing strategies to attract and retain important services.

Down Payment Resource, the nationwide database for homebuyer programs, released its Fourth Quarter 2019 Homeownership Program Index (HPI). The latest HPI data debunks five common down payment myths that may be keeping buyers on the sidelines longer than necessary.

Myth #1 - You need 20% down to buy a home.

A survey found that 41% of people believe a high down payment is required to purchase a home. In fact, there are many low down payment loans and programs available. New data shows that a lower down payment may even be better for many new buyers, as it provides a valuable cash cushion. Research by the JPMorgan Chase Institute found that liquidity — having at least three months of mortgage payments available — is a better measure of homeownership success than a large down payment. 

There are a wide range of homeownership programs that can help with the down payment and closing costs.

Myth #2: Down payment help is only for first-time homebuyers.


The industry often associates homeownership programs with first-time homebuyers, but eligibility is actually broader. The official definition of a first-time homebuyer — according to HUD — is someone who hasn't owned a home in the last three years. In addition, the HPI reports that 41% of homeownership programs do not have a first-time homebuyer requirement and are available for eligible repeat homebuyers.

Myth #3: Down payment programs aren’t available in my area.

Down payment programs are available in every market across the country. The HPI reports 70% of programs are available in a specific local area, such as a city, county or neighborhood and nearly 30% of programs are available state-wide through state housing finance agencies — a 2% increase from the previous HPI. States with the greatest number of down payment programs remained consistent —California, Florida and Texas are the top three.

View a complete list of state-by-state program data.

Myth #4: It’s too expensive to buy a home in my market.

Down payment help is available in every market, including high cost areas. The HPI reports that 11% of programs offer incentives and even specific programs for community service workers, including educators, police officers, firefighters and healthcare workers — a 3% increase from the previous HPI.

Plus, more than 6% (6.3%) of programs have benefits for veterans, members of the military and surviving spouses. These programs can also be layered with zero down payment VA loans.

One-to-four unit multi-family properties can also qualify for down payment help. 25% percent of programs allow buyers to purchase a multi-family property as long as the buyer occupies one of the units, which allows the homeowner to earn income from their rental units to help pay the mortgage.

Myth #5: Down payment programs make home financing more difficult.

There are 2,451 homeownership programs available in the nation and 83% currently have funds available to eligible homebuyers. Exploring home financing options should be the first step for prospective buyers, however, they don’t have to go it alone — housing agencies, program administrators and participating lenders can provide expert guidance.

Homebuyers can get a jump start by completing the homeownership education course typically required to qualify for a program. This education is usually free, online and gives buyers confidence with the home buying process, financing options and budgeting. Homebuyers should refer to the specific requirements and education providers as specified by the program.

After a homebuyer is approved for a program, the agency will provide documentation that can be submitted with an offer. Sellers can also benefit because the down payment program may help cover closing costs.

Let's see what your eligibility is TODAY! 

Contact us.

702-326-7866

info@aundreabeach.com

www.AundreaBeach.com

Aundrea Beach-Greco
NMLS 333739
Mortgage Advisor, CMPS

3 Tips for Renters prepping for 2019

The New Year always screams goal setting, right? It’s time to look forward and envision where you see yourself this time next year. Is owning a home on your list of goals?

Before you stumble upon that dream home while out looking at holiday lights, take these three simple year-end steps that will jump-start your journey to homeownership. You’ll be well on your way to a new home before that New Year’s Eve countdown begins. 

1. Simple budget creation and review
2. Talk with a lender
3. Look at your down payment options

How much are you currently spending each month on cars, credit cards, student loans, rent and other housing related expenses, like utilities? What is that amount annually? Do you anticipate any rent increases?

Take a look at your other expenses too. You want to have a solid understanding of your monthly income and expenses so you know what you can handle for a mortgage payment. This exercise will keep you from jumping into a mortgage payment that stretches you and your family too far.

And, with homeownership comes home maintenance so it’s important to have a cushion for those necessary (and sometimes fun!) projects.

Mortgages are not one size fits all. You want to work with a lender who is experienced and can listen to your goals and budget to find the best loan that fits your needs. Make a plan to talk to a lender before year end. Learn about their low down payment options, fees and the monthly and lifetime cost of your mortgage.

Check out our five essential lender interview questions for a guide on what to ask prospective mortgage lenders.

Do you know about homebuyer programs that can help you save on your down payment and closing costs? Down payment programs can give you a major homeownership boost in the form of grants, forgivable loans and tax credits. But, they also require approvals and paperwork so you want to get your options on the table soon.

Investigate what’s available in the area you plan to buy. Use our down payment assistance program finder to answer a few question about your household to narrow down your options.

Good luck and happy New Year!

I am here to help, and if you need guidance on starting a budget just reach out.

Aundrea Beach-Greco
Mortgage Advisor, CMPS - NMLS 333739
702-326-7866
info@aundreabeach.com

Go online to learn more >> www.AundreaBeach.com