Down Payment Assistance

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Down Payment Assistance
Down Payment Assistance - One of the biggest topics for first time home-buyers involves down payment money. The questions range from do I need to have any money to make a down payment on a home to how can I get some money to assist with making a down payment. There are many different ways to buy a home with a down payment or without and there are many different down payment assistance programs available throughout the country. Consult your OH mortgage broker to find out more information about down payment assistance and home mortgage loan programs for first time home-buyers.

Down payment assistance programs are not a free ride. The buyer is often required to take first time home-buyer classes and meet with budgeting and credit counselors. The process can be lengthy.

Also, the home usually has to pass an inspection performed by the entity offering the down payment assistance. This can also slow down the transaction.

In addition, the buyer is often required to live in the property for a set period of time.

All down payment assistance programs work differently and not all lenders will allow a borrower to use them.

The types of programs that are available to you will depend largely on your credit history. For many first time homebuyers an FHA loan is an excellent choice because it allows your friend and family to assist you in the purchase of a house by providing a down payment "gift" to help you with your down payment. If you do not have any cash to put down yourself, and do not have family who are able to assist you there are plenty of other types of loans available that do not require a down payment at all.

Mny first time buyers look for down payment assistance programs because they erroneously believe they need a large down payment to buy a home. Actually a good loan officer, with the asistance of a good real estate agent, can usually get you 100% financing with liile or no closing costs.

Buying a home with nothing down - Buying a home without putting any money down is becoming increasingly popular and even easier than ever before. There are many different mortgage options available for financing a home without a down payment. You can go with an 80/20 combo loan or you can go with a 100% 1 loan. You can choose to have a fixed rate, an adjustable rate or even an interest only type loan. You could also go with a 15, 20, 25, 30, 40 or even a 50 year mortgage option. Therefore, as you can see there are many choices available and you should consult the help of a mortgage professional to find out what is the best mortgage option for you.

There are additional programs and features available to help you pay for closing costs as well. Many of the 100% financing programs allow what is called a "seller assist" this can be either 3% or 6% of the purchase price, depending on what you qualify for. There are also 103 or 107 programs that allow you to finance 103% or 107% of the purchase price to help pay for closing costs.

Buying a home with nothing down is becoming the norm for first time home buyers. Although you are putting no money down on the home, there are still closing costs that need to be paid. Sometimes the seller will pay part of your closing costs to facilitate the transaction. Also, a family member can "gift" money for closing costs.

Carleton Sheets and other no money down methods - Some real estate courses advertise that you can invest in real estate "no money down". While true, there are some upsides and some downsides to this type of investing.

One upside is that you can get started with little or no cash out of your pocket.

A downside is that it will be harder to find a "positive cash flow" deal when you dont put any money down.

Finding a good mortgage broker can make your real estate investing career much easier. Your mortgage broker should have many programs available to investors, including creative ways to buy property with no money down.

Consider getting your own real estate license. It can make you 3% when you buy your next house!

OH down payment assistance programs - Questions about down payment assistance programs are a very common question for a homeowner to ask a mortgage professional. These types of programs are usually for first time home-buyers, and each community or program usually has its own rules, guidelines and procedures for figuring out who qualifies for them.

Contrary to popular belief, you do not have to be a minority or a low income borrower to qualify for down payment assistance. There are programs available for many different scenarios.

Can I buy a home without having a down payment? - Is it possible to buy a home without any money for a down payment? This is one of the most common questions asked, especially by first time homebuyers. Yes it is very possible to buy a home without the availability of any money for a down payment. In fact, in 2005 almost half of the first time home buyers that purchased homes bought a home without having a down payment and using a 100% financing program.

There are many different options for buyers looking for zero down programs. Some offer true 100%financing by allowing you to borrow up to 103% or 107% of the purchase price to cover closing costs. Others allow gifts from family members to cover all or a portion of a down payment.

Even if you are approved for 100% financing, there are still other costs to consider. There will be closing costs and things like homeowner's insurance and home inspections. You may be able to get the seller to agree to pay your closing costs. They are generally allowed to contribute up to 6% of the purchase price. Make sure you ask your loan officer how much cash you will need to close.

When a seller pays your closing costs, there are usually limits as to which closing costs they can pay. Most of the time, the seller can only pay for non-recurring closing costs, and you will still be required to pay the rest.

There is a downpayment assistance program that I am involved in that helps home buyers to get downpayment and closing help. If you want to know more, please send an email to oncoursellc@bellsouth.net.

Down Payment Assistance Programs - Down Payment Assistance Programs (DAPs) have become common and necessary for individuals who want to obtain an FHA mortgage without any down payment. In a common practice when purchasing a home, the seller of a home would contribute up to 3% to a charitable organization. A buyer of the home would then receive a 3% grant from the same charitable organization minus a fee (typically $350). The IRS has recently ruled that companies who do these types of transactions can no longer be considered a non-profit organization. FHA required that DAPs may only be acceptable from non-profit organizations, family members, employers, or close friends.

This practice accounts for nearly one-third of all FHA loans. Therefore this ruling will greatly limit the effectiveness of FHA.

To see the IRS rulings and see a list of companies who are no longer eligible, visit http://www.irs.gov/irb/

Some of the most popular include Ameridream, Nehemiah, and Home Down Payment Assistance. As many as 185 non-profits could lose their non-profit status because of this practice.

Saving for a down payment - Saving funds for a down payment should be part of an overall program to get your finances in order prior to shopping for a home. This includes rounding up financial records, examining your spending habits, and setting a budget you can live with. Remember, too, that the down payment is not the only up-front expense. An allowance for closing costs should also be included in your savings budget.

Many people use tax refunds every year to help with for a down payment and/or closing costs when trying to buy a new home. There are many other ways to save for a down payment, however in this day and age it is not even necessary to always have to come up with any money to use for a down payment and/or closing costs. There are a lot of 100% home loan financing programs available and there are many ways to be able to not have to pay any money out of pocket for closing costs as well. Consult your OH mortgage broker now before interest rates increase to see if you can qualify for a mortgage with zero down, or better yet no money at all out of your pocket.

Making a down payment is the best way to reduce your interst rate because the loan is less risky to the lender. As little as 5% down can sometimes make a big difference your interest rate and lower your montly payment.

Consider setting up an automatic savings plan where you work. A certain amount of money can be deposited in your "down payment savings account" automatically each week and deducted from your paycheck.

One way some engaged couples accumulate their down payment money is with a Down Payment Bridal Registry Account. Friends and family can give gifts in the form of cash or checks to the couples registry account. As much fun as it is to open up gifts of towels, casserole dishes, crystal and candles at your wedding reception, knowing your friends and family are helping you buy your first home together is better!

 

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