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Using incoming assistance on your next mortgage loan

Although the days of easy credit and 100% financing may have disappeared, at least for now, payment assistance programs are still alive and well.

Survived by Good Finance, these programs provide valuable service to boost local housing markets.

Payments to interest-free other mortgages

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From grant payments to interest-free other mortgages and other special mortgage programs, more and more options would be home buyers.

This includes those who want to buy an apartment without damaging the property and those who do not own the property.

Customers can earn as much as 120 percent to 140 percent of media revenue and still qualify for some payment assistance programs.

For example, a buyer who lives in Orange County, Calif., Can earn nearly USD 98,000 a year and qualify for a donation of up to 5 percent of the purchase price of a home, in accordance with the requirements of one of the state’s incoming payment assistance programs.

What types of payment assistance are available

Payment assistance comes in many forms, but the most common sources are:

  • Community grants

  • State Housing Agencies

  • Local housing agencies

  • Community Reinvestment Act programs

  • Fannie Mae

  • Freddie Mac

  • Federal Housing Administration

There are more sources than mentioned above, but this will represent the vast majority of programs available and a great place to start your research.

How do you qualify for the Payment Assistance Program?

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While the program guidelines vary from product to product, some of the standard guidelines are listed below. The list is not comprehensive and not all of these restrictions will apply to a single payment assistance program in most cases.

Here are the common qualifiers:

  • Be a first-time homebuyer. Make sure and understand the definition of “first home buyer”.

  • They take property as their primary residence, usually not allowed by non-employee co-borrowers

  • Complete Adult Education Counseling and obtain a certificate of completion through a qualified homebuyer counseling center.

  • Meet the requirements of the lender and the borrower/guarantor

  • Your income must be within program income.

  • The home you want to buy must fall within the program’s home price.

  • You do not need to have ownership for the last three years.

  • You have to live in the house you buy.

Again, not all of these requirements are likely to be applicable to your desired program. However, many will be aware and willing to meet them if necessary.

Will you have to run a training school?

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Homebuyer education is crucial to the homeowner’s success and happiness. It is highly recommended that all first home buyers be educated.

While not necessary for all payment assistance programs, it never hurts to be prepared and it is always a good idea to start your process with a homebuyer education course.

How do I take this educational course?

  • ONLINE: There are a number of accredited online educational choices

  • IN-PERSON: face-to-face Homebuyer Education through NeighborWorks America or any HUD-approved housing counseling

Where to find a list of payment assistance programs

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Any search for help to help pay should start with your state housing agency. They offer most of the DPA information and programs.

Your local housing agency, county and/or city is also a great resource. This is especially true for community grant programs that can often provide the best deal for low moderate-income buyers.

HUD also has some quality information on payment assistance programs that work with an GFI mortgage loan.

The Good Finance Bank has put together one of the most comprehensive databases on payment assistance programs in the country to reduce barriers to homeownership.

The database includes homebuyer and general first aid programs.

In the end, however, your mortgage lender will be the last vote. Not all lenders offer all the programs so it is imperative that you check with your loan officer first to make sure they can assist you with the reimbursement assistance program that you hope to pursue.