So you have decided to buy a house. But you don't have enough cash for both down payment and closing costs. You can afford one or the other but certainly not both! Or maybe you don't have enough for either. You simply have the desire to own a home of your own. Don't give up, there is hope!
Many people don't realize that 100% financing for a home is not easy to get. Especially if you have no previous mortgage payment history. This is the predicament many First Time Home buyers find themselves in. They have a good job and often good credit. But extra cash is in short supply.
Down Payment Assistance (DPA) Programs are the answer to the dilemma.
Olympic Northwest Mortgage is familiar with many of the available DPA programs. Every year we help homeowners find ALL the money needed to purchase their dream home. Listed below you will find several of the more popular DPA programs. This not a complete list. This is a list of organizations that we know and trust from past experience.
Futures Down Payment Assistance Program
Allows up to 6% Gift Funds towards the purchase of a home. The funds can be used towards down payment or allowable closing costs. This program requires seller participation. The normal scenario is for the amount needed to be added to the sales price of the home. At closing the seller makes a contribution to the Futures Program which in turn "gifts" the money to the buyer. This program is HUD approved and works well with FHA 97% mortgages. There is a reasonable flat fee charged to the borrower that is added to the closing costs.
Nehemiah Down Payment Assistance Program
Nehemiah offers down payment assistance programs to qualified home buyers. This programs offers gift funds to be used towards down payment and closing costs for eligible FHA loan programs. Gift funds are available up to 6% of the purchase price. The only requirement is an approved FHA mortgage.
AmeriDream
AmeriDream, Inc. is designed to provide down payment assistance to low and moderate income home buyers who demonstrate the need for financial assistance. To use their program, buyers must purchase a home enrolled in The AmeriDream down payment Gift Program and qualify for a mortgage. If the house you are interested in is not enrolled with AmeriDream, don't worry. Any home can be enrolled with the sellers agreement.
City of Bremerton Housing Programs
The City of Bremerton currently has two housing programs available: Down Payment Assistance and Rehabilitation. The dollars that the City of Bremerton uses for these programs are HUD dollars. The money comes with two requirements. All houses must be within the Bremerton City limits and all households using the programs must fall within the HUD income guidelines. The income limits change each year. Check with your loan officer for up-to-date information.
Bremerton Down Payment Assistance
The down payment assistance program is designed to provide low interest rate second mortgages that make home buying affordable for eligible first time home buyers wanting to purchase within the Bremerton City limits. The borrower must qualify for a first mortgage from a private lender (homeowner selects the lender). The City’s second mortgage may be used to assist with down payment, closing costs, and gap financing. The maximum loan is generally $5,000 with 3% or 5% interest-only payments for 15 years. The principal deferred until change of use or transfer of ownership.
Bremerton Owner Occupied Rehabilitation
The owner occupied rehabilitation program focuses on life-safety repairs or replacement of major building elements such as roofing, plumbing, windows, heating systems, painting, etc.
The maximum loan is $25,000.00; minimum loan is $5,000 with 3% or 5% interest-only payments for 15 years. The principal is deferred until change of use or transfer of ownership. Loan to value ration cannot exceed 95%. The loan is secured by a Deed of Trust and is no lower than second position. For any questions regarding these programs, please call your loan officer.
Kitsap County Consolidated Housing Authority
KCCHA Down Payment Assistance
The Housing Authority currently has Community Development Block Grant (CDBG) and Housing Opportunities Made Equal (HOME) funds to be used for assisting First Time Home Buyers in the purchase of a home. The home buyer must meet income eligibility of less than 80% of Kitsap County median income guidelines, as established by HUD. These funds may be used with 50% matching funds for down payment and/or 100% of reasonable closing costs up to a maximum of $20,000.00 for property located within Kitsap County, excluding the City of Bremerton.
Please talk to one of our loan officers about these and other available programs.
