My New Blog

Down Payment Assistance Program

January 4th, 2018 11:36 AM by Sam Kader

One of commonly believed myths in buying a house is that you have to have 20% down payment. Though we prefer if you have 20% down to avoid paying for Private Mortgage Insurance (PMI), you can buy a house with as little as 1% down payment.

Here's more information on the HomeReady Program:

Minimum FICO score is 720.
Owner occupied, Single Family Home only.
Down Payment Assistance (DPA) of up to $5,000.
Borrower to contribute 1% towards down payment. (Sorry this program is no longer available as of 1/1/2019). However, you can still qualify with 3% down payment HomeReady program.

Essentially, the program is 97% financing with DPA program contributing up to $5,000 towards down payment. For example:

Assuming a Purchase Price of $300,000
DPA of $5,000 towards down payment
Borrower contributes $4,000 towards down payment
Total down payment of $9,000 or 3%.

Posted in:100% financing, first time home buyers, affordable and tagged: first time home buyers 100% financing affordable

Posted by Sam Kader on January 4th, 2018 11:36 AM

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