Down Payment Assistance
BorrowSmart by Freddie Mac
We are pleased to offer Freddie Mac’s BorrowSmart, which can provide up to $1500 as a grant for your down payment or closing costs.
- Based on area median income and other eligibility requirements
- May be used in conjunction with other first-time homebuyer & down payment assistance programs
- Requires pre-purchase homebuyer financial counseling.
For more details and availability information download the flyer
GSFA Member County “Assist-to-Own”
If you work for a GFSA Member County, you may qualify. This program provides down payment and closing cost assistance (DPA) up to 5.5% along with competitive First Mortgage interest rates.
The main DPA is in the form of a deferred Second Mortgage at 3.5% of the first Mortgage loan amount. Additional DPA is available in the form of a Gift, up to 2%, for a total of up to 5.5% in DPA for eligible borrowers.
Program Highlights:
- Variety of Mortgage Loan options (FHA, VA, USDA, & Conventional)
- No first-time homebuyer requirement.
- Flexible guidelines: Minimum FICO 640; Max DTI 50%
For more details, and availability information download the flyer.
THE 3 MAIN TYPES OF DOWN PAYMENT ASSISTANCE
For many families, the down payment can be the most challenging part of the home-buying process. Fortunately, you have options to help you come up with the sum. There are 3 primary ways to augment your down payment resources, including gift funds, grants, and down payment assistance programs.
GIFTS
(Mobile users: TAP to flip)GIFT FUNDS
For conventional loans, it’s typically defined as any amount that equates to more than half your total monthly qualifying income.This gift needs to come from a family member, which can include anyone from spouses to step-aunts, adopted cousins, grandfathers-in-law, etc.
GRANTS
(Mobile users: TAP to flip)GRANTS
Down payment assistance grants are offered through government agencies like the Department of Housing and Urban Development (HUD) & through nonprofits.Though these mortgage programs can vary by state, amount, & requirements, they typically take into account the home price & geographic area, as well as your income & credit score.
LOANS
(Mobile users: TAP to flip)LOANS
Down payment assistance loans are a broad category that can range from interest-free, forgivable loans to interest-free deferred-payment loans and even low-interest rate loans.
Some of these programs require income limits, approved geographic locations, purchasing a home below the given median home price for that area, how much money you’re able to put toward your down payment, and more.
To learn more about these down payment assistance options contact us!
