MISINFORMATION About Loans and Down Payment Assistance--
Specifically about Orange County Down Payment Assistance is Running Rampant
Well, I am not a mortgage specialist, loan officer, lender, and I have no affiliation with Orange County Down Payment Assistance BUT I have successfully gotten money from them for a Buyer I worked with recently and I am constantly faced with people spreading misinformation about their program, probably because the information is confusing in and of itself and partly because everyone involved in a transaction with them must jump through many hoops (the Buyer, the Loan Officer, the REALTOR, and sometimes the Seller, too). That may be why they get a bad rap BUT--it's worth it for the Buyer who has little or no down payment and is willing to jump through those hoops.
Most recently, I was told by a two well-meaning people that our Orange County Down Payment Assistance Program for First-Time Home Buyers is all out of money. That is just not the case (for this week).
In the first instance, the well-meaning Loan Officer I was recently introduced to said flat-out: "I just came from a meeting in which we were told that the money is almost all gone."
In the second instance, I was at a listing appointment/Seller initial consultation and the Seller told me that another agent that she had met with said to her that that money is "all gone."
Hmmm. While it IS true that there is a lot less money available from Orange County's DPA/SHIP Program, there still IS money available (at least, as of this week). How do I know? Because on Friday, a Loan Officer for one of the Buyers I'm working with told me we got the thumb's up from OC DPA for a new property. That particular Buyer doesn't own the property yet but when the county has the entire loan package and the county reviews the file and says "yes," then it's very likely that it'll go through. That fact doesn't mean it's a done deal but it's likely to mean the money is still there.
So, if you are hearing that a particular loan program is or isn't available or that a particular county or city's down payment assistance funds are or aren't available, please check your source. Well-meaning people may or may not have all the pertinent information. Or, maybe they're talking about another program entirely. Or, maybe they know it's just a very difficult transaction to put together and don't want to bother. These programs are near-to no down payment (100% financing is still available to some people and for some properties) but the Buyer must have at least $1,000 into the transaction.
Well, in the course of writing this post, I heard another agent in my office say "Down Payment Assistance is GONE" and I literally cringed. He confused another lady in my office b/c he didn't qualify his statement by adding "Seller-Funded" DPA is gone, which is true--at least for the time being. But, that may be coming back in a limited form, too. The confused lady in my office did the right thing, though--she got more information and is better-educated because of it. Do the right thing for yourself--GET MORE INFORMATION before you give up entirely.