There are national non-profit organizations dedicated to
assisting homebuyers with their down payment and closing costs.
Buyers can receive a free gift under these programs. Gift amounts vary
with each program but are generally available in amounts of 3% with some
programs, all the way up to $22,500 with others. Buyers never have to
repay these gifts.
It's easy to receive a free gift from these programs, however
qualification guidelines do vary with each program. Each program
requires that buyers must qualify for any eligible loan program with
their lender (there are many programs that qualify).
While this is the ONLY qualifying requirement of some programs, others
have requirements such as requiring that the buyer complete a Home
Ownership Counseling Course or provide 1% of their own funds into the
transaction. In addition some programs have income/asset restrictions,
recapture clauses, reserves required, or geographic boundaries. Each
program can provide you with their specific requirements and/or
limitations.
These programs generally participate with FHA, Conforming, and
Non-Conforming loan products. Most of these programs do not underwrite
the loan or add any cost in the form of points, fees, etc., they simply
provide the gift for the down payment and/or closing costs.
These down payment assistance programs can be used for Single Family
(1-4 unit) homes, Manufactured/Modular Homes, Condominiums, Townhouses,
Existing or New Construction, Rehab and Non-Conforming.
