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Loan Programs for Low to Moderate Income Families

By
Real Estate Agent DRE #337069

Family

There are several goverment programs that are in place that give down payment assistance, The Good Neighbor Next Door is provided through the  U.S. Department of Housing and Urban Development (HUD). This program encourages law enforcement officers, teachers, firefighters and emergency medical technicians (EMT) to live in the low - and moderate income neighborhoods where they work. HUD believes this effort will strengthen communities, reduce crime and promote homeownership opportunities.

Eligible buyers may purchase HUD-accuired homes located in certain revialization area with the following criteria:

  • At a 50% discount from the list price *
  • With a DownPayment of $100, if FHA financing is used. However, due to mortgage insurance requirements, FHA loans may cost more over the life of the loan that other low downpayment opportunities. 

     *HUD places a 50%, zero interest, forgivable second mortgage on the property.

The Guarnteed Rual Housing Program is by the U.S. Department of Agriculture (USDA) Rural Development. The program assists low-to-moderate income buyers in rural areas and features:

  • Financing of up to 100% which allows more buyers to be eligible for the program. 
  • Closing costs and prepaids that can be financed  if the total loan amount remains withing the appraised value.
  • An annual fee paid to USDA's Rural Development that's collected as part of the monthly mortgage payment.

Most low to moderate income programs require that you complete a Homebuyer Education progam which may include the following

  • Face to face counseling
  • Facilitated workshop
  • Self study materials in conjunction with telephone counseling

Other limitations apply, click here for more information.

 

There are opportunties to purchase a new home and help available for brand new buyers. Click here for more information

 

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David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

I have heard of these for years but never seem to find anyone who fits into them.

Have you completed one or more?

Dec 03, 2013 10:14 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine
I have never come into contact with this program. It sounds like a great political ploy to get elected. I would love to know who has done it and where.
Dec 03, 2013 12:02 PM
Vicky Spivey
Cumming, GA
North Georgia Area Specialist

I have used both of these programs - the good neighbor one in California, I had a teacher as a client and the USDA one here in cumming for two different clients. I think they are both great programs, they take a little longer to go through but I think they are great programs.

Dec 03, 2013 11:50 PM
Jeff Jensen
The Federal Savings Bank/Lending in 50 states - Greenwich, CT

I know USDA is used in limited towns in Connecticut but have never seen the other programs in use here.

Dec 04, 2013 05:19 AM
Vicky Spivey
Cumming, GA
North Georgia Area Specialist

The good neighbor program is mainly in major cities or cities that have depressed areas - the one I did was in Long Beach CA

Dec 04, 2013 05:32 AM
Randy Mitchelson,APR
Marketing Advisor & Squeeze Mortgage - Bonita Springs, FL
First Impressions are made at First Click

Don't forget subprime programs are coming back too so those applicants with good employment, income but credit dings will have more options than in recent years past.

Also don't forget VA for our military families who operate on limited budgets. Downpayment requirement is practically non exisitent and the program is very lenient.

Dec 04, 2013 06:02 AM
Vicky Spivey
Cumming, GA
North Georgia Area Specialist

Those will be in my next blog!!

Dec 04, 2013 06:06 AM