Down Payment Assistance Programs

OK - so the FHA does not like down payment programs like Nehemiah or Ameridream because the default rates on these loans is higher than a homebuyer who makes a down payment. But, they do serve a purpose in helping folks with their dreams of home ownership. Let's not forget that with a FHA loan you must qualify full documentation under pretty rigid guidelines - so with that being said - the DAP's are going away as of October 1.

So if you have been on the sidelines regarding a purchase and you need down payment assistance from the seller -then you need to act now. Because after Oct 1 - you will need 3.5% as a down payment and on a 200K purchase, that would be $7000.

There is some pending legislation to allow the DAP's, but as of right now - the deadline is Oct 1.

Also, don't forget when purchasing a home to use this formula - you can normally purchase 3-4 times your total household income - your other debt influences that number.

Rich

Down Payment Assistance

On a Break

Here's the good news. Rich and I will both be utilizing this blog a lot more to keep you up-to-date on the happenings at Covenant Mortgage and in the mortgage industry. The not as good news...we're taking a little break from the radio show.

We love interacting with ya'll every Saturday, but right now, other commitments make the time we have to dedicate to the show impossible. So, we'll still take all of your questions; you'll just have to call us at the office. (1-888-780-8781 or info@covenantfinancial.com).

Regarding the current market - now really is a great time to buy a home, especially for first timers! We're seeing amazing deals from sellers and rates are still very low. We're helping customers structure their purchases in a lot of different ways, so if you've been sitting on the sidelines, now may be a great time to get in the game.

So, keep checking this blog for updates, and if you have a mortgage need, please give us a call or send us an email. We love serving you!

Blessings,
Karen