Learning to properly care for your home does more than just save money short-term and give you a more pleasant place to live: it preserves the value of your home, increasing the price you can get when it’s time to sell or refinance.
First-Time Homebuyers Down Payment Assistance
Many first-time homebuyers stay out of the housing market longer than necessary because they do not have the cash on-hand to cover the down payment. With Guaranteed Rate‘s new Double Match Down Payment Assistance program, first-time homebuyers can realize their dreams of owning a home sooner than they expected. Our friend Maureen Lein of Guaranteed Rate told us about a program that helps first-time homebuyers cover the costs of their down payment.
Unlike similar down payment assistance programs, Guaranteed Rate’s Double Match program does not go through a third party. By reducing the red tape, Guaranteed Rate’s process takes 30 to 40 days instead of 60.
Here’s how it works:
- The lender gives the homebuyer 2% of the purchase price up to $417,000.
- This assistance is a grant (gift) and does not need to be paid back.
- Homebuyers contribute 1% of the sales price. Additional gifts may be used to contribute to the down payment, but the 1% must be the borrower’s own funds.
- For example, if the selling price is $200,000, Guaranteed Rate would provide a grant covering $4,000 of the down payment while you would have to cover $2,000.
- The program is for first-time homebuyers only. A borrower is considered a fiirst-time homebuyers if they have not owned a home in the past 3 years.
- Homebuyer education is required.
- Any HUD-approved homebuyer education program is acceptable.
- Most are online programs and can be completed within 30 minutes.
- A minimum FICO score of 680 is required. Not sure of your credit score? Ask Maureen.
- Homebuyers must have minimum debt-to-income ratio of 45%. Not sure how to calculate this ratio? No problem. Maureen can help.
- Homebuyers must have 2 months of PITIA in reserves.
- PITIA is principal, interest, taxes, insurance and association dues.
- A retirement account can be used as reserves.
- Maureen will help you determine the total PITIA cost.
- With this program, the percentage of private mortgage insurance (PMI) required is reduced from the typical 35% to just 25%.
- Annual income limits apply. Contact Maureen for details.
If you know any first-time homebuyers who are dragging their feet on buying their first home because they do not believe they can afford the downpayment, have them contact Maureen today. She will get them set up and on their way to owning their own home in no time.
Our Home Value Preservation section is just for you! What advice or tips can we provide for you? Please email us with your ideas. Our goal is to help homeowners enjoy their homes while preserving their home’s value.