Down Payment Assistance Programs Part 3 of 3

This is a series based on a class I offer to real estate agents. If you have any buyers who have little or zero down payment, this is a way to help.

Here are the topics that will be covered in this issue:

• Benefits of using FHA with DPA programs?
• Benefits of using VA with DPA programs?
• Benefits of using Conventional with DPA programs?
• DPA Sample Contract Language

Benefits of using FHA with DPA programs?

• NOT a credit score driven loan program.
• Allows 3% in Seller Concessions for closing costs, and/or prepaid expenses.
• Sales price limit is now $271,200.
• Payments usually compute out cheaper than 100% options using conventional financing.
• Eliminated most of the fees that the seller had to pay such as processing and underwriting.
• Allows appraisal to be done using "AS IS" condition.

Benefits of using VA with DPA programs?

• Does not require a down payment (100% financing).
• NOT a credit score driven loan program. nAllows 4% in Seller Concessions for closing costs and/or prepaid expenses.
• Loan limit $417,000.
• Payments usually compute out cheaper than 100% options using conventional financing.
• Best suited in conjunction with Bond Programs.

Benefits of using Conventional with DPA programs?

• Does not require a down payment (100% financing).
• If buyers credit is excellent, sometimes offers cheapest payment option.
• Loan limit $417,000.
• Allows 3% in Seller Concessions for closing costs.
• Usually best suited in conjunction with Bond Programs.
• Least amount of documentation.

I provide full service mortgage planning and guidance services in the East Valley of Mesa AZ. I specialize in helping first-time homebuyers obtain homeownership. I can be reached at (480) 214-2818.