You need at least a 600 credit score for our FHA down payment assistance program and 640 for our conventional down payment assistance loan. Your mortgage FICO scores will be pulled.
We offer down payment assistance for FHA and conventional loans for PRIMARY RESIDENCES ONLY!. See next question for different loans available.
Conventional 3% DPA: This loan covers the 3% down payment and allows up to 3% in seller credits to help cover closing costs. This loan is a grant that does not have to be repaid. NO MULTIFAMILY PROPERTIES OR MANUFACTURED HOMES ALLOWED!
Conventional 1% DPA: This loan covers 2% of the 3% down payment and requires buyer to pay 1% of down payment and allows up to 3% in seller credits to help cover closing costs. ONLY FOR PURCHASES UP TO $350,NO MULTIFAMILY PROPERTIES OR MANUFACTURED HOMES ALLOWED!
FHA REPAYABLE LOAN: This is a 10 year repayable loan 1% higher interest rate than first mortgage.
FHA FORGIVABLE LOAN: Loan has no interest rate and no required monthly payment. Is forgiven after 36 months of consecutive, on time payments. If loan is refinance or paid off within first 36 months, loan will not be forgiven. Any late payments restarts 36 month window for forgiveness.
FHA DPA loans are only available for Single Family Homes, Townhomes, Condos, Manufactured homes, and duplexes ONLY !
We do NOT offer any assistance for VA or USDA loans.
The maximum debt to income allowed is 50% for conventional and 56.99% for FHA.
Our FHA down payment assistance loans have no income limit.
Our conventional down payment assistance program has an income limit of 80% of the area median income. You may type your city in on this website tool to see what 80% AMI is https://ami-lookup-tool.fanniemae.com/amilookuptool/
You do NOT have to be a first time homebuyer, but if all borrowers are first time homebuyer, you will need to complete a homeownership education online and provide the certificate of completion to your loan officer if your score is below 640. The course link will be provided to you.
Manufactured homes are ONLY allowed with our FHA down payment assistance loan and must meet HUD guidelines for FHA including being on a permanent foundation.
This program only covers your down payment. You as the buyer are still responsible for closing costs. You are also responsible for up front costs such as earnest money, appraisal fees, and inspection fees. (Closing costs may be covered by seller. 3% maximum credit for conventional loans and 6% maximum credit for FHA loans.
You may have your agent ask the seller to cover your closing costs when writing an offer***. Closing costs average around 3%-5% of the home price. If the seller covers your closing costs, all you are responsible for are the up front costs. You may also have a family member gift you the money to pay your up front costs, leaving you with very little to no money out of pocket. ***SELLER CREDITS ARE NOT GUARANTEED!
These vary based on many factors, but you can expect to pay $98 for credit check, at least $500 for earnest money, $650 for an appraisal, and $400 for an inspection total at a minimum $1,630.
The interest rate and closing costs may be higher on down payment assistance loans than paying your own money. A higher interest rate will increase your mortgage payment and debt to income which may result in a lower preapproval amount than without down payment assistance. High closing costs in some cases may mean that you still have to pay some money towards your closing although you don't have to pay a down pabut for some is a great alternative if they are not able to save for a down payment.
If you are ready to apply for a home loan, you will need to complete the loan application, upload loan documentation, and have a credit check completed which will be a hard inquiry. The cost of the credit check is $98 and must be paid up front at the time of your application. This credit check allows us to shop your application with multiple lenders for the best terms and rates.
The link to the application is https://legacylendingmg.my1003app.com/1816247/register?time=1706053047475
For licensing information go to www.nmlsconsumeraccess.org.