Are you in need of funds for a down payment?
Many people struggle to save funds for a home down payment, but today there are several affordable options available to help buyers achieve homeownership with little to no down payment.
NC Housing Finance Agency Down Payment Assistance
• NCHFA provides several products that bridge the down payment gap. NC residents have potential assistance for both first time and subsequent buyers. The NC 1st Home Advantage program provides a fixed rate first mortgage combined with $8000 in DPA. The $8,000 DPA may be used towards down payment and/or closing costs. Plus the $8,000 DPA has no interest or payment required and is available only to first-time home buyers.
• NCHFA offers another DPA without the first time home buyer requirement. It provides the traditional first mortgage along with DPA in the amount of 3 or 5% of the first mortgage amount. Like above, the 3 or 5% of the first mortgage amount may be used towards down payment and/or closing costs.
VHDA (Virginia Housing Development Authority) Down Payment Assistance Grant:
• VHDA provides both down payment assistance and grants for Virginia home buyers. Primarily, their programs are for first time home buyers, although there are exceptions.
SC Housing Down Payment Assistance:
• For SC buyers we offer the SC Housing $6,000 DPA product. When combined with an FHA or USDA loan, the $6,000 may contribute towards down payment and/or closing costs. Unlike NCHFA, there is a repayment feature on this assistance. Although, this is traditionally a first time home buyer product, there are exceptions to this requirement.
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Frequently Asked Questions
1. If my current lender does not offer down payment assistance, could I use you for just the DPA?
Whichever lender is providing the DPA or grant must also provide the first mortgage. Therefore, if your lender does not offer these products, we would be happy to discuss which works for you. If our DPA or grant programs offered through a state works for you, we would need to provide both the first mortgage and the DPA or grant.
2. Is down payment assistance or grants just for first time home buyers?
Many DPA and grant programs are designed for first-time home buyers. Keep in mind that a first time home buyer means not owned a residence in the last 3 years. So, it does not mean first time ever. Plus, many programs allow for other buyers if a property is in a targeted area, is a military Veteran or the program just allows for subsequent buyers. Each state and programs within each state differ.
3. Is down payment assistance the only way to buy a home with no money down?
There are other potential loan options for no or low down payment. Options include VA loans, USDA Rural Development, FHA, HomeReady, and Home Possible. Each product including DPA have advantages and disadvantages depending on the scenario.
4. Am I required to live in the home for a certain amount of time?
Most DPA products require that the buyer occupy the home for a certain length of time. When they do, and the buyer sells the home or possibly rents the home out, there could be a recapture or other feature involved.
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