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Down Payment Money is Available and You May Qualify

Jun 04, 2018

You’ll be surprised to learn that homes in high costs areas may qualify for assistance.

Down payment assistance programs (DPAP) are available across the United States at the state, county, city levels and in certain private sector groups.   For example, in California, the California Housing Finance Agency (CalHFA) offers affordable loan programs and assistance.  Although many programs are for first-time homebuyers, you do not need to be a first-time homebuyer to use CalHFA’s FHA and Conventional first mortgage loans.
 
How it works: Most people borrow a large amount of money they need to buy a home. This type of borrowing is called a first mortgage loan. There are also mortgage loans that can help out with down payment or closing costs, called junior loans.  DPAP has first and junior loan options, including low to zero interest rate down payment assistance loans.  While there’s no minimum credit score requirement, however, a “preferred" minimum score of 640 helps to keep the monthly payment affordable.
 
The DPAP qualification is based on income limits, sales price limits, and other eligibility criteria.  In addition to borrower eligibility, a homebuyer education and counseling are required.  The education can be accomplished by attending a 1-day class usually available during weekdays after work hours, Saturdays, or, completing the course online.  Upon completion, a certificate is issued and used for loan program qualification.  The certificate is good for 12 months.
 
TIP: even if you’re not ready to purchase a home today, the homebuyer certificate should be obtained as soon as possible because the funds are available based on first come first served.
 
Down payment money is out there.  I’ll help you find it.
 
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