So I've been looking for financing options to help out home buyers get that 1st home.(First time buyer being anyone who has not owned a home in the last three years)
Sure there are a few remaining places you can get a 100% loan these days, Rural Development, VA...some niche products within the community bank markets...but for the majority of folks these days, FHA was one of the last places to get that house without having to put alot of money down.
However , if you are in the industry you probably already know that the bill has been signed to eliminate DPA on these FHA loans for good come October 1st. And you may also know that a few smart senators already submitted a bill to change that...but the point is until things progress...no one really knows if DPA will survive or not.
Which brings me back to my point for this blog. GRANTS!!! Free money, available to help someone buy a house and meet that 3% downpayment requirement.
You can currently get a grant that does not have any stipulations on profession or location of the house you want to buy. This is HUGE...because that has always been the issue with grant money...the stipulations that come with it.
This grant does have a few conditions. The bank providing this grant requires the home to be located in Florida, Georgia, North/South Carolina or Alabama.
They provide a grant at a 5:1 ratio...i.e for every dollar the homeowner can fork out for a downpayment, they will match 5 in return...up to $2000 from the buyer...which would get $10,000 in grant money.
Your household income needs to meet area requirments...so that means you cannot make more than as listed below per household:
1 person = $39,840 2 person = $45,550
3 person = $51,250 4 person = $56,950
5 person = $61,500 6 person = $66,050
7 person = $70,650 8 person = $75,200
The Bank providing this grant will hold a second lien on the home, will require no payments on that lien, and will release it after the homeower has been in their home for 5 years.
The first loan needs to meet normal FHA guidelines.
There are a few other details of this program, but those are the basics.
Read up on it, learn about it, and use this option to help buy your first home, sell one to a buyer, or finance a client.
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