What is a Bond Loan?
A type of mortgage loan where the cost of borrowing is partially subsidized by a mortgage revenue bond
Although details differ between programs, they generally are designed to lower the cost of homeownership for low to medium income borrowers, sometimes for targeted occupations or neighborhoods
These loans are typically only available to FTHB
Typically include earned income limitations
What is a DPA Loan?
Down Payment Assistance.
The first type is from Charity/Not-For-Profit 501c3 organizations. Primarily, does not require you to be a first time home buyer, and is based upon certain critical factors.
Government Grants for first time home buyers, make up the second type of down payment assistance.
Typically the only requirement to satisfy government assistance housing guidelines is that your family income must meet the stipulated minimum, which varies according to the number of your dependents and the median income for the area in which you intend to purchase.
What is the difference between a Bond and a DPA loan?
Bond Loans
Cost of borrowing partially subsidized by a mortgage revenue bond.
Specific delivery requirements.
In most cases, repayable if borrower does not plan to live in home for a certain timeframe.
Typically require borrower to sign a note and deed @ closing.
DPA Loans
Forgivable money provided to those who do not have ample savings for a downpayment.
Typically are non-repayable.
A note and deed are not filed @ closing.
What is an MCC?
Mortgage Credit Certificate
A certificate issued by state or local governments that allows a taxpayer to claim a tax credit for a portion of the mortgage interest they pay during any given tax year.
What is NeighborhoodEdge?
A closing cost program offered by PrimeLending to help promote homeownership in identified low-to-moderate income areas to assist those low-to-moderate income borrowers with covering the cost associated with purchasing a home.
Eligible borrower’s can receive up to $2,000 in closing costs assistance.
Call me today to learn more about the PrimeLending Advantage.
Oscar
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Oscar Busch Mortgage Loan Originator |
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| NMLS: 1326698 (703) 424-2146 Office (703) 470-7538 Mobile (877) 763-5686 Fax | ||||
| 11130 Fairfax Blvd Suite 303 Fairfax, VA 22030 | ||||
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PrimeLending NMLS: 13649. Equal Housing Lender. |
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