With the rising costs of consumer items in recent years, saving up for a down payment and closing costs to purchase a house can be a significant financial challenge for many. However, there are various programs available to assist individuals in achieving their dream of homeownership with minimal out-of-pocket expenses. In this blog post, we will explore the top programs that offer down payment assistance, including options such as Conventional 1% down, FHA 100% CLTV Combo, Fannie Mae & Freddie Mac $2500 DPA Enhancement, USDA Home Loans, and VA Home Loans. These programs can provide the necessary support to help individuals overcome financial barriers and secure their own homes.
1% Down Conventional Loan
The Conventional 1% Down program is a form of down payment assistance the lender provides. Qualified borrowers with eligible income can contribute just 1% towards the down payment, while the lender covers the remaining 2% up to $3,000 or $4,000, depending on the scenario. The following document delineates the specifics of this offering and the corresponding eligibility criteria.
This initiative facilitates access to homeownership for a broader audience by furnishing down payment support to individuals with incomes up to 80% of the Area Median Income. These loans conform to the HomeReady and Home Possible programs offered by Fannie Mae and Freddie Mac. A big advantage of this program is it conforms to the standard conventional property guidelines and follows debt-to-income guidelines as determined by the automated underwriting system. This allows more flexibility than other down payment assistance programs.
$2,500 Down Payment Assistance Enhancement
The $2500 Down Payment Assistance Enhancement program is designed to support borrowers utilizing the Freddie Mac HomePossible program and the Fannie Mae HomeReady program. This credit can be utilized towards down payments and closing costs, providing valuable financial assistance to eligible individuals who fall within the 50% of Area Median Income bracket for their property location. Additionally, this enhancement can be combined with the existing 1% down up to $3000 program, offering even greater financial flexibility and support to potential homeowners, with total grant funds up to $5,500.
FHA 100% CLTV Combo
The FHA 100% CLTV Combo program is a game-changer in the realm of homeownership, specifically tailored to empower low to moderate-income individuals and families. By providing 100% financing through a combination of an FHA first lien at 96.5% and a second lien of up to 3.5%, Capital City Mortgage is committed to breaking down financial barriers and making the dream of owning a home a reality. The program offers great flexibility as expected from FHA, with credit scores down to 600 and debt ratios determined by the automated underwriting systems.
USDA Home Loans
No down payment assistance is required for this program. The USDA Home Loans are the perfect solution for borrowers seeking 100% financing in rural areas. Capital City Mortgage provides clients and referral partners with a seamless and efficient process. With our industry expertise and direct access to underwriting, we offer a simple solution to our rural clients. Enjoy the benefits of a 30-year fixed rate, no down payment requirement, and the option to finance closing costs. From single-family homes to condos and PUDs, we offer flexible loan options for various needs.
VA Home Loans
The VA Purchase Loan program is an excellent option for veterans and eligible service members in Nebraska who want to own a home. The program offers benefits such as no down payment, competitive interest rates, no private mortgage insurance, easier qualification, and flexible repayment options. These advantages make it easier for veterans to achieve their homeownership goals.
Conclusion
In conclusion, navigating the financial challenges of saving for a down payment and closing costs to purchase a home can be daunting. However, there are various down payment assistance programs available to help individuals achieve their dream of homeownership with minimal out-of-pocket expenses. Programs such as the Conventional 1% down, FHA 100% CLTV Combo, Fannie Mae & Freddie Mac $2500 DPA Enhancement, USDA Home Loans, and VA Home Loans offer valuable support to overcome financial barriers. By exploring these options, individuals can find the necessary assistance to secure their own home and take a significant step towards financial stability and independence. If you are considering purchasing a home, be sure to research these programs and see how they can benefit you on your homeownership journey.
**APR (Annual Percentage Rates) are based on market rates as of 4/1/2024. The purchase price used is $200,000, with a maximum loan amount for the program offered. Estimated credit scores of 740.
**1% Down Conventional Loan – 7.428% APR
**FHA 100% CLTV Combo – 8.213% APR
**USDA Loan – 7.295% APR
**VA Loan – 6.735% APR
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