Thanks to the down payment assistance programs available through government agency’s and other non-profit organizations, RMS and Joshua Tree Lending Group now have the ability help people into homes that would normally not be able to afford the down payment. This program is an excellent opportunity for families that are wanting to buy a home but just don’t have the upfront capital needed to make the jump.
Can down payment assistance help me?
Down payment assistance can be a great tool for the right buyer, but there are a few things that you need in order to qualify for this amazing program.
First things first, you need to be a first time home buyer that hasn’t owned a home in the last 3 years. This is one of the more important aspects of this program as its designed to help first time buyers get over the boundaries a down payment puts up.
The next thing you’ll need to be aware of is that you’re going to have to invest some time. You are required to take an 8 hour course about home buying and the stipulations associated with it, in addition to waiting 30-45 days for the loan to close.
In addition to the above, you’ll also need to be approved by a down payment agency, and in order to be approved, the home can not be an investment property. You will need to actually be using the home as a residence for the duration of the loan.
What are the usual rates for “DPA”?
The rates for down payment assistance can vary based upon the purpose of the loan. For instance, a rural loan is based off of the percentage of the loan, where as down payment assistance for a home is a set amount. Lets talk about the different types of down payment assistance.
Lift Down Payment Assistance can go up to $15,000 but there are a few stipulations for this kind of assistance. The main one is that you must use the property as your main residence, and there are certain income limitations that apply. There are also a number of benefits offered by the assistance type.
Any home within Las Vegas is applicable, and the funds can be used for a down payment, closing costs, or principal reduction in addition to not needing to be paid back.
Rural Down Payment Assistance is a unique form of assistance because its value is 4% of the total loan amount. Eligible areas are limited to several Nevada counties, and you must have a 640 FICO in addition to meeting other restrictions. for more information about this form of assistance, give us a call at (702) 580-5069.
Home Down Payment Assistance can go up to $14,999 but, you must be a first time home buyer and be in an eligible area (North Las Vegas and Unincorporated Clark County). Some of the benefits are that you don’t have to pay back the assistance, and the funds can be used towards the down payment, principal reduction, and the closing costs.
WISH Down Payment Assistance has a max payout of $15,000 but has a set of stipulations applied to it. You must have a FICO of at least 640, and there are limits on the max income you can make. It also has to be used toward a primary residence. The funds also have some benefits associated with them. The money can be used toward a down payment, closing costs, or principal reduction, and the funds don’t need to be paid back.
NSP Down Payment Assistance can go up to $25,000 but has a different set of qualifications. The eligible areas for NSP vary based upon the municipality, call us at (702) 580-5069 for more information, and the properties must be used for non-profit or jurisdictions only. They have the same benefits as home down payment assistance.
Culinary Down Payment Assistance can go up to $10,000 but has a different set of qualifications. The eligible areas vary based upon the municipality, call us at (702) 580-5069 for more information, and the properties must be used for your personal living. There is no interest on the loan, and you do not have to pay the loan back until you sell, transfer, or refinance your home, again with no interest.
They’re a few stipulations with this kind of assistance, however. You need to have restricted household income to < $76,000 annually for 2 people, < $89,000 for 3 or more people. You must also contribute 3% of the purchase price, and your required to complete an 8 hour orientation class.