Down payment assistance programs relate to those grants provided either by state or federal government or by local authorities that helps interested home buyers belonging to certain income group in a specific area with grant that is used to cover the down payment with all forms of closing costs related to home loans. In other words, the down payment is nothing but funds given by the seller. It is noticed that the seller is sometimes covering the down payment of your first time home buyers loans together with the closing costs. Thus first time home buyers are able to buy their property for very few dollars at closing. So if you wish to own a house look out for such programs or owner ready to cover the Down Payment Assistance or DPA together with other related costs.
Such funds are given to first time home buyers only. These are usually tax free grants that are forgivable if the home buyer uses this to buy a house and make it their prime residence. Thus the Federal Housing Administration (FHA) loans program are offering down payment assistance program to actively assist home buyers with down payment with closing costs related to a FHA based home loan. Here are few steps to follow to obtain down payment assistance on your FHA home loan.
The most important step of getting FHA home loan down payment assistance is to ensure that you are equipped with their eligibility criteria. You should be first time home buyer and fall under low income category. You should further maintain a steady employment history for the last couple of years. The credit score is usually 600 or even higher. Mortgages for bad credit are no longer readily available like they were in 2005 and 2006. The buyer must have capability to pay back the FHA home loan.
After meeting with the eligibility criteria of the FHA home loan, pay a visit to your bank and submit the FHA home loan application form mentioning the loan officer that you would apply for down payment assistance program called the "Neighborhood Gold". This down payment assistance program actively assists the first time buyers to pay off the down payment money with all other closing costs.
Then fill out the required application forms for both FHA home loan as well as the "Neighborhood Gold" down payment assistance. Your loan officer will provide necessary instructions about your future approach. The approval of the FHA home loan along with the down payment assistance program may take few business days time.
It is your loan officer who will get in touch with you when the FHA home loan along with the down payment assistance program is approved. After approval is confirmed, visit your bank to complete the paperwork for your new home loan, to determine mortgage rates today, as well as your down payment assistance program.
DPA has acquired an important position in financing backdrop today as the real estate industry consider it an important tool to boost up the process of acquiring home ownership for those people coming from low income group. The first time home buyers should grab the opportunity of cherishing their dream of having their own homes buy by doing extra paperwork with obligatory education classes to get down payment assistance with much lower interest rate on home loans.
Author Resource:
Oliver Silverstones makes it easy for the first time buyer to find all the state and local first time buyer programs. He keeps a daily update of the lowest mortgage rates today , as well as providing great advice to avoid most first home buyer headaches.
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