Did you know I offer several different down payment assistance or bond loan programs such as TSAHC, Home Sweet Home, Homes for Heroes, TDHCA’s 79 or SETH to name a few? If you feel like you are ready to buy a home but need help with the funds to close, you may be able to get help through a down payment assistance program.
How Do Down Payment Assistance Programs Work?
Down payment assistance programs are administered by a local or state housing authority or a nonprofit organization. They provide a set amount of money to qualified homebuyers. Homebuyers can use the money to cover their down payment and/or closing costs.
The money you receive through the program may be considered one of three things: a grant, an interest-free loan (forgivable) or a debt you pay off in the future. Typically, you’ll have to agree to live in the home and use it as your principal residence for a certain period of time to avoid having to repay the money. If your down payment assistance is treated as a loan, it would have to be paid in full if you sold the property, refinanced or finished making all of your mortgage payments. The thought behind the repayment is that the no monthly payment loan helps you get INTO the home with the hope that your home value will increase over the years.
Who’s Eligible for Down Payment Assistance?
Not everyone will qualify for down payment assistance. Each program has its own rules for determining eligibility. Each program has its own income limits, max debt ratio and max sales price. Not all of the programs require you to be a first-time homebuyer either!
Does Your Credit Matter?
Down payment assistance programs are designed to help homebuyers who might otherwise be shut out of the market. We have programs that go down to a 620 credit score and the down payment assistance is available to be used with FHA, VA and Conventional loans.
During the preapproval process, I will review your income, expenses and credit history and see if you fit into the box of any of the DPA programs we have available. If you are eligible, I will always provide you with the option for your review.
If you have any questions, please feel free to reach out. There are some great programs being offered and I would love to help you get into a home of your own!
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