Monday April 9, 2018 by The Mettle Group
Do I need a down payment to purchase a home?
This is a question we get asked quite often by first-time home buyers and the answer is, NO. Many first time homebuyers may qualify for down payment assistance*.
There are down payment assistance programs all across the country which are often administered by local or state housing authorities and nonprofit organizations.
Down payment assistance can come in a variety of ways which include; grants, fixed second liens as well as forgivable second liens. Grants usually do not have to be paid back. Fixed second liens are a true second mortgage that is typically repaid on a 30-year, fixed-rate loan. Forgivable second liens are a second mortgage that has a 0% interest rate, requires no monthly payment and is forgiven after a specific period of time (typically three years). They can also be available in conjunction with multiple loan types; FHA, VA, USDA and Conventional.
Down payment assistance programs are a great way to buy that first home and not all programs are limited to just first time homebuyers. Many programs across the country do not require you to be a first time buyer.
Each program is unique and can have income limit criteria as well as purchase price limits. Most programs will require monthly mortgage insurance but generally at a lower rate than with a standard conventional loan with less than 20% down.
Down payment assistance can range from 3.5% to 7% of the loan amount depending on the program.
If you are a newly attending physician, down payment grants are currently available in conjunction with one of our physician home loan programs in Arizona, California, Colorado, Florida, Idaho, Illinois, Massachusetts, Minnesota, North Dakota, Nevada, Pennsylvania, Texas, and Wisconsin. Not all counties in each state are covered; please reach out to us for additional questions and program specifics. Learn more HERE.
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Loan Officer NMLS# 941210
Fairway Independent Mortgage Corporation
2063 E 3900 S, Salt Lake City, Utah 84124
*Eligibility subject to program stipulations, qualifying factors, applicable income and debt-to-income (DTI) restrictions, and property limits. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Copyright©2018 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Lender. Licensed by the Department of Business Oversight under the California Financing Law. Loans made or arranged pursuant to a California Financing Law License. CA-DBO 941210; AZ License #BK-0904162; MA Mortgage Broker and Lender License #MC2289. MA Loan Originator License #941210; Licensed Nevada Mortgage Lender