DOWN PAYMENT ASSISTANCE FREQUENTLY ASKED QUESTIONS

You need at least a 620 credit score. Your mortgage FICO scores will be pulled.

This is a conventional loan, so you must be able to qualify for a conventional loan.

The maximum debt to income allowed is 50%.

Yes, you must meet income limits. Click the link below and put in an address for the area you are interested in purchasing in and look for the HOME POSSIBLE INCOME LIMIT. You must not make more than that number yearly. If you make more, YOU DO NOT QUALIFY. If you make less, you may continue the process fo

Visit https://sf.freddiemac.com/working-with-us/affordable-lending/area-median-income-and-property-eligibility-tool?utm_source=eloqua&utm_medium=email&utm_campaign=2023-02-24_AFFORDABLE_Announce

You do NOT have to be a first time homebuyer, but if all borrowers are first time homebuyer, you need to complete a homeownership education for free online and provide the certificate of completion to your loan officer. Click here to complete. https://creditsmart.freddiemac.com/paths/homebuyer-u?gad_source=1&gclid=CjwKCAjw2Je1BhAgEiwAp3KY79g0pkmfxiSf5BNFco00atjSF4OXrKGTo11eJNAYyYRsq_oEm2e0PhoC1A4QAvD_BwE

The down payment assistance is not "free money". It is a loan with a 0% interest rate and no minimum payment requirement. It is repayable at the end of the 30 year term, if you sell the home or refinance the loan. 

Manufactured homes are NOT ALLOWED to be purchased using this program.

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.

You may have your agent ask the seller to cover your closing costs when writing an offer. Closing costs average around 3% 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.

These vary based on many factors, but you can expect to pay at least $500 for earnest money, $600 for an appraisal, and $400 for an inspection total at a minimum $1,500.