There is no question that the country is in the midst of a cycle where credit is tight, and mortgage lenders are taking a conservative approach to residential home financing. But, that doesn’t mean that there aren’t plenty of great mortgage programs available, that will suit just about any scenario that a prospective buyer has.
I am surprised at how few people are aware of what is referred to in the industry as “down payment assistance” programs. In essence, these are programs sponsored by non-profit organizations that offer grants for down payments to qualified buyers, which are funded by the seller. In many cases these are compatible with traditional financing options such as FHA, and can mean that a buyer can secure their new home with no money out of pocket.
For a nominal processing fee (which can be paid by the buyer, seller or lender), these programs contribute up to 6% of the sales price toward the borrower’s down payment and/or closing costs. Best of all, this gift does not have to be repaid!
This is also a great way for sellers to differentiate their listings to prospective buyers…offering to participate in a down payment assistance program and enable prospective buyers to buy with no money down may be a more effective marketing strategy than an equivalent price reduction in this inventory laden market.
Want to know more? I’d be happy to help you and give you all of the details and help you evaluate whether a down payment assistance program may be a good solution for you! E-mail me at John@MrWilliamsburg.com
Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time home buyers, low-income and moderate-income individuals and families who wish to achieve home ownership. Here are just a few of the programs available in the Williamsburg, York, New Kent, Gloucester or James City Counties, Newport News, Hampton, Poquoson, Isle of Wight, Suffolk, Chesapeake, Norfolk, Va Beach, Smithfield or any other Peninsula, Southside, Hampton Roads or Tidewater Areas.
AmeriDream Program is a non-profit organization dedicated to helping people find affordable housing. Part of the AmeriDream mission is to help low and moderate income families buy homes by offering down payment assistance. Buyers who are qualified for an FHA loan but don’t have the money for down payment and/or closing costs are eligible to apply for AmeriDream down payment assistance:
- A down payment gift of up to 10% (typically 3%-6%) of the purchase price.
- A true gift-the down payment assistance is not repaid by the home buyer
- Home buyer must have an approved FHA home loan or pre-approved FHA loan.
Nehemiah Program has helped over a quarter of a million Americans purchase homes. Unlike some down payment assistance programs, Nehemiah offers down payment help to anyone who qualifies for an approved FHA loan. There are no limits on income or assets, but buyers must have an FHA loan or be pre-approved for an FHA mortgage. The Nehemiah program offers:
- Up to 6% of the final contract sales price for down payment and/or closing costs.
- Available for first-time and repeat home buyers.
- Approved for new construction and resale homes.
- No geographical restrictions.
As with most down payment assistance programs, these funds are not available for “second mortgage” or home equity loans; Nehemiah is intended to help people buy a new home. The process for applying for Nehemiah is similar to most other down payment assistance programs:
The Genesis Program also known as Grant America, is a non-profit down payment assistance program. It is operated by the Penobscot Indian Tribal Nation and technically qualifies as a government entity. Like other Native American tribal nations, the Penobscot tribal nation is HUD-approved to offer assistance, even to those living outside tribal jurisdiction. Grant America offers down payment assistance to low and middle income home buyers:
- Those with an FHA loan or are pre-approved for FHA mortgages qualify for the Grant America program.
- Grant America offers up to $34,000 in down payment assistance.
- This program is open to those with approved FHA loans buying new or resale homes.
- Program participation is not required to be included in the contract, but the seller must participate in the Grant America program.
Applying for any of these programs to buy a home with No Money Down in Williamsburg, York, New Kent, Gloucester or James City Counties, Newport News, Hampton, Poquoson, Isle of Wight, Suffolk, Chesapeake, Norfolk, Va Beach, Smithfield or any other Peninsula, Southside, Hampton Roads or Tidewater Areas is simple. All you need to do is Contact John Womeldorf/ Realtor and I will assist with all of the steps that include :
- Getting pre-approved for an FHA loan or completing your FHA mortgage paperwork and getting approved for a specific FHA loan amount.
- Finding a home you want to buy.
- Contact one of our preffered mortgage lenders.
- Our loan officer will complete a Grant application on your behalf.
- The funds will be wired to the bank the day of closing the deal (or the day before if you close in the morning).
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