19 02, 2019

FHA Down Payment Grants for 2019 Announced

By |February 19th, 2019|Down Payment Assistance|

Already in the second month of 2019, and the FHA Down Payment Assistance programs have been announced for each state. These grants and down payment assistance programs are geared to help make the mortgage process more affordable for first-time homebuyers. The rules and benefits vary from state to state so here’s the breakdown for Connecticut, Maryland, New Jersey, New York, and Virginia.

Mortgage Assistance for Homebuyers in Connecticut

CHFA Downpayment Assistance Program: The Connecticut Housing Finance Authority (CHFA) offers a Down Payment Assistance Program (DAP) with low interest rates to homebuyers who are eligible for a CHFA first mortgage. This assistance is provided in the form of a supplementary loan with below-market interest rates.
Fairfield Homeownership Assistance Program: The Town of Fairfield in Connecticut offers a federally funded Homeownership Assistance Program to help income-eligible, first-time homebuyers who don’t have the funds needed to cover the down payment or closing costs on a home.
Hamden First-Time Homebuyer Down Payment Assistance Grant: Hamden’s Office of Housing and Neighborhood Development offers eligible applicants a First-Time Homebuyer Down Payment Assistance Grant. Under this program, qualified individuals receive up to $5,000 in matching funds in down payment assistance.
HouseHartford Homebuyer Assistance Program: The HouseHartford Homebuyer Assistance Program was created in an effort to increase homeownership opportunities in the City of Hartford. It offers low and moderate-income homebuyers down payment assistance up to a maximum of $40,000.
Statewide Downpayment Assistance Program: The Housing Development Fund and the Connecticut Department of Housing recognize that though many individuals can afford monthly mortgage payments, they don’t have down payment funds available. To help with this issue, they initiated the Statewide Downpayment Assistance Program.

Financial Assistance for Homebuyers in [...]

23 01, 2019

Is Down Payment Assistance Available?

By |January 23rd, 2019|Down Payment Assistance|

Typically a minimum of 20% downpayment is required for most home purchases. But, what is a potential buyer to do when cash is simply not available to them? Luckily, across the United States, the emergence of a number of key Down Payment Assistance Programs have made the dream of home buying more likely than ever.
Down Payment Assistance Programs can be administered by a local or state housing authority, a nonprofit organization, or directly through a lender. Down Payment Assistance Programs are available in one of three forms – a grant, an interest-free loan, or a debt you pay off in the future.

Who Qualifies for Down Payment Assistance?
Every state has slightly different rules on who qualifies for Down Payment Assistance but two factors that are considered include your income and the amount of home your are purchasing. Earning limits – for example, can vary from 80% of the area median income in one state but can be as high as 120% in another. Similarly, other states may only make this type of assistance to first time home buyers only.

How much of a down payment can I get?
The amount of funding available varies from state to state and the rules on how each state awards the assistance also varies. That is to say, that for some states, the amount awarded for assistance can be based on the home’s sales price or simply on a flat amount that is capped.

Does my credit matter when looking for Down Payment Assistance?
Of course your credit matters. But, these programs are designed to provide a home purchase option to folks who would otherwise not have one. Your credit worthiness is still checked and remains a factor in [...]