There are national non-profit organizations dedicated to
assisting homebuyers with their down payment and closing costs.
Buyers can receive a free gift under these programs. Gift amounts
vary with each program but are generally available in amounts of 3%
with some programs, all the way up to $22,500 with others. Buyers
never have to repay these gifts.
It's easy to receive a free gift from these programs, however
qualification guidelines do vary with each program. Each program
requires that buyers must qualify for any eligible loan program with
their lender (there are many programs that qualify).
While this is the ONLY qualifying requirement of some programs,
others have requirements such as requiring that the buyer complete a
Home Ownership Counseling Course or provide 1% of their own funds
into the transaction. In addition some programs have income/asset
restrictions, recapture clauses, reserves required, or geographic
boundaries. Each program can provide you with their specific
requirements and/or limitations
These programs generally participate with FHA, Conforming, and
Non-Conforming loan products. Most of these programs do not
underwrite the loan or add any cost in the form of points, fees,
etc., they simply provide the gift for the down payment and/or
closing costs.
These downpayment assistance programs can be used for Single
Family (1-4 unit) homes, Manufactured/Modular Homes, Condominiums,
Townhouses, Existing or New Construction, Rehab and Non-Conforming.
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