100% financing it’s not just a myth! When you use unconventional methods to get it!
Thinking about owning your own home, but you just do not have the money to cover the down payment required by the bank? Well this information might help you a little bit. The day of the easy 100% financing is gone, but if you really want to purchase a home and are willing to do a little extra to get that dream of home ownership then keep reading.
Now days there are no true 100% FINANCING, but there are grants out there for First Time Home Buyer’s who don’t have a down payment. Check out these Arkansas Down Payment Assistance Programs. If you have any questions please don’t hesitate to go to my website www.yourexitrealtor.com and I will get you an answer.
Here are some of the Grant Programs that I have done some research on and have used to help many of my First Time Home Buyer Clients Get in their First Home. I have Several Qualified Lenders on my Website who would love to help you get the assistance you need to Buy your First Home.
· Arkansas Development Finance Authority (ADFA)
· Arkansas Dream DownPayment Initiative (ADDI)
100% Financing Loan Program
· U.S. Rural Development (USDA-RD)
Arkansas Development Finance Authority GRANT
For many Arkansans, the largest obstacle to homeownership is saving for down payment and closing costs. In fact, this is a problem all too common among low to moderate income Arkansans who have little of their pay check left after paying for rent, utilities, transportation, insurance and groceries. To help, the Arkansas Development Finance Authority (ADFA) initiated the Downpayment Assistance (DPA) Program.
ADFA has DPA for qualifying applicants of a first mortgage. The DPA ranges from $1,000 to $6,000 for closing cost assistance. Cash back to the borrowers is allowed for expenses "paid outside of closing" (POC). In order for the funds to be replenished they must be designated as being paid up front by the borrower and be reflected as such on the HUD-1 Settlement statement. This applies only to the ADFA hard second mortgage. It does not apply to ADDI loans.
INTEREST RATE: VARIES
TERMS: 10 YEAR AMORTIZATION
What is the Arkansas Dream Downpayment Initiative (ADDI)?
Downpayment Assistance is one of the biggest obstacles to homeownership. Nationwide, thirty percent of low-income buyers cannot afford to buy a modestly priced home solely because they lack sufficient funds for the downpayment and closing costs. The Arkansas Dream Downpayment Initiative, funded by the HOME Investment Partnerships Program, provides funding to assist with the upfront costs of buying a home and give hundreds of families throughout the state the ability to purchase their first home.
What are the goals of the ADDI Program?
• Increase the overall homeownership rate in Arkansas.
• Create greater opportunity for homeownership among lower income and minority households.
• Revitalize and stabilize communities throughout the state.
What are the eligible uses of ADDI funds?
ADDI funds may be used for downpayment and closing cost assistance towards the purchase of single-family housing by low-income families (80% of area median income or less) who are first-time homebuyers.
What is the definition of a first-time homebuyer?
A first-time homebuyer is defined by federal regulation as someone who has not had an ownership interest in a residence at any time during the past three years.
What type of property is eligible?
Under ADDI, eligible property types include single family housing (1-4 family residence), condominium unit, or combination of manufactured housing and lot. The unit must meet all applicable State and local housing quality standards. The purchase price cannot exceed the HUD 203(b) Mortgage Limits.
If you qualify......
ADFA will provide ADDI funds in the form of a forgivable loan (soft second mortgage) in an amount up to six percent (6%) of the purchase price for downpayment and closing costs, not exceeding $10,000. The assistance will be forgiven in equal annual installments over the period of affordability (five years), as long as the homebuyer continues to own, occupy, maintain, insure, and pay all taxes on the home.
Rural Development Loan
When FHA did away with seller contributed gift funds, the USDA better known as Rural Development or RD loans became one of the two programs of choice for buyers looking for 100% financing (VA being the other). Arkansas home owners are not new to RD loans but they have become a much more sought after product in the last 2 years. Here are a few of the highlights of the RD loan program:
- No down payment - true 100% financing
- No monthly mortgage insurance
- No cash reserves required
- No asset limits: you may keep liquid cash savings and other investments
- Not just for first time homebuyers - anyone may qualify
- Loan up to 102% of the appraised value - the 2% guaranteed fee may be added to the loan amount regardless of appraised value.
- Competitive 30 year fixed interest rates
I hope this information helped out my Fellow Arkansas’ looking to Purchase their FIRST HOME.
Buying and Selling a home is a huge Financial decision, Blake Roussel with Exit Natural State Realty is your Real Estate Professional for Conway, Little Rock, Maumelle, Benton, Bryant, Jacksonville, Cabot, and Searcy, Arkansas. My goal is to walk you through each step of the buying or selling of your home, so that we have a smooth transaction. Call Us today 501-230-6082. Customer Satisfaction is our #1 GOAL, we are here to serve you throughout this process. Check out what my past clients have said about our Customer Service. We look forward to hearing from you.
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