Some of the down payment assistance programs offered in Sacramento contain income limits, like you can't earn over a certain annual salary to qualify. Or, you can't have bought a home within the past 3 years, or you can only buy in a certain area. Other programs involve a silent mortgage, which needs to be repaid upon resale.
However, the 1% down payment assistance program offered through Guild, in partnership with Fannie Mae, appears to be free money to a buyer. There is no repayment. No higher interest rate. No complicated process to apply.
I have advertised this program in the confidential agent remarks of some of my listings located in areas where there are no income restrictions. Yet, buyers have not taken advantage of the money that is available to them. This doesn't make sense to me. The reluctance makes me wonder if their agents have informed them of this option. Or, maybe their agents don't really care. Perhaps they figure the buyer has a preapproval letter from a good lender so it makes no difference to them.
The drawback is this program goes away on June 15, so a buyer would need to close by then. You can read more in my personal blog today at this link: Free Money, Yes, Free Down Payment Assistance from Guild Mortgage.