Short on Cash for a Down Payment?

Buyers Sitting on the Sidelines Waiting to Buy
Need Down Payment Assistance?

By Julie Chroust, Senior Mortgage Consultant, Prospect Mortgage

 

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Down payment assistance in conjunction with the purchase of a primary residence is becoming more and more popular! The reality is this - there is a lot of money out there to be used to help potential homeowners take advantage of this amazing time of LOW home prices and LOW interest rates.

Down payment assistance is making buying a home more affordable than ever. In fact, the affordability Index, which measures the ability of the median income earning family to purchase an average-priced home, is near an all-time high. This means that buying a home and making a mortgage payment can cost less than paying rent!

Thousands of people dream of becoming homeowners, but often times they are short on cash for the down payment or closing costs. Down payment assistance can bridge that gap.

There is a specific Grant that is used in conjunction with the FHA loan that seems to be taking the State of California by Storm - the great news, the buyer doesn't need to apply themselves for the actual grant, the loan officer will reserve the funds for the buyer upon them having an accepted offer on a home.

Highlights of this Grant Program:

 

1.	3 percent grant for homebuyers to use for closing costs, down payment or pre-paid loan expenses.	6.	Property must be in California.
2.	Grant does not have to be repaid.	7.	30-year fixed-rate term
3.	All other FHA guidelines apply, including 6 percent in seller-paid closing cost assistance.	8.	Condos, PUDs and single-family residences
4.	This loan only requires buyers to contribute percent toward the purchase.	9.	Income restrictions apply (Contra Costa and Alameda County income limit is $110,760 annually) Wow, that is 120% of the Area Medium Income!!!
5.	Primary residence, owner-occupied purchases only