Need a Downpayment?
Are you saving for the down payment to purchase your home? If you are, then you might want to know about the programs we offer to help families with their homeownership goals. The faster you start building equity while rates are low and values are going up, the faster you can build family wealth. Remember, you can refinance down the road once you have either saved more or built equity in the value of your home.
Often, rents are so high it hinders the would-be-buyers from being able to save for the down payment. There are alternatives, that can get you on your way faster to building equity in a home. Here’s just a few:
- MyHome provides a deferred-payment junior loan – up to 3.5 percent of the purchase price, or appraised value, whichever is less, to be used for your down payment and/or closing costs. This program must be combined with a CalHFA first mortgage loan.
- The GSFA Platinum homebuyer assistance program currently provides low– to moderate– income families and individuals with a grant up to 5 percent of the total loan amount, that does not have to be repaid. The grant can be used towards a down payment and closing costs.
- Through the Chenoa Fund program, borrowers can receive an FHA first mortgage with a forgivable or repayable second mortgage of 3.5 percent which can be used towards their down payment. The terms of the second mortgage are based on the borrower’s qualifying income and HUD’s Area Median Income (AMI) requirements.
- Freddie Mac’s Home Possible mortgages offer home financing options for low– and moderate-income borrowers looking for low down payments (3-5 percent) and flexible sources of funds. Home Possible Advantage mortgages offer more flexibility for maximum financing. This offering adopts the responsible and affordable flexibilities of Home Possible, but with additional requirements.
- The CalPLUS is another 3 percent down payment option that provides the borrower with a zero-interest junior loan for their closing costs and deferred payment.
- The Conforming Plus is a loan program that allows down payments as low as 3 percent.
- If you are a qualified Veteran, then the VA loan has a zero-down payment loan for purchasers.
- The USDA is also a zero-down payment option but is restricted to rural areas.
If you would like to learn more about these and other programs, feel free to give us a call. There is probably a program to fit your needs, you just may be pleasantly surprised. For more information on the mortgage process or to get preapproved, give us a call. Iron Point Mortgage is always happy to sit down with you to discuss your homeownership goals and give you a free consultation and tell you what your options may be. Call us for an appointment, and let’s get you on the path to homeowhership. Have a great day.