Down Payment Assistance
Need To Move?
Want To Buy A Home?
Running Short on Funds?
Down Payment Assistance has arrived!
Times are tough and sometimes the perfect timing of wanting to buy a home, needing to move and having the necessary down payment doesn’t converge when we would like.
We understand!
That’s why we have been working feverishly on the development of our new Down Payment Assistance Program.
Here’s How It Works:
Depending on purchase price, down payment requirements for our homes runs 2%-5% of the purchase price with the 99% of our deals only requiring 2% down.
Presently, for the purchase of a primary residence, FHA loans require a minimum of 3.5% down and conforming limit Fannie Mae & Freddie Mac loans require a minimum of 5% down. Jumbo and Super Jumbo loans require 10% and 20% down, respectively.
Under our new down payment assistance program, you can buy your dream home with as little as the first month’s payment plus the equivalent of one month’s payment for your initial down payment. The remainder of the down payment required will then be amortized into equal monthly installments during your 24 month contract term. Utilizing this program requires a minimum total down payment of 3.5% for homes that are in the FHA loan limits (different loan amounts by city/state based on HUD’s MSA or Metropolitan Statistical Area), 5% Down for conforming Fannie Mae & Freddie Mac loans and 10% & 20% for Jumbo and Super Jumbo loans, respectively.
So, how does it shake out?
Simple, take a look at this example:
If the home you are purchasing cost $300,000, under our normal scenario you would be required to bring the following:
First Month’s Payment of: $2,000.00
Down Payment @ 2%: $6,000.00
Total Required at Contract Execution: $8,000.00
Total Required at Contract Execution: $4,000.00
With the remainder of the 3.5% down payment being amortized into equal monthly installments over the 24 month term.
For example:
$300,000
X 3.5%
$10,500.00 required for FHA down payment
- $2,000.00 paid at contract execution
$7,500.00 remaining to equal total down payment
÷ 23 months remaining of contract term after first month’s payment (total of 24 months)
$ 326.09 monthly amount amortized into payment
So, this makes the monthly payment $2326.09 for the remaining 23 months
Benefits
- Helps you get into your new dream home TODAY with a minimum of money down*
- Ensures that you build up the total required down payment so that when you are qualified for a mortgage, you don’t have to bring any additional down payment to closing**
- Because our owner finance contracts are legally in compliance with the IRS’ Installment Sales Contract Guidelines, your monthly payment is tax deductible*** providing you an increase in your take home pay of $581.52 to $767.61 if you are in the 25% or 33% tax bracket, respectively. Did you hear that? An extra $581.52 to $767.61 in your NET take home pay (you know, the money you actually get to spend?) which makes the actual payment feel like $1744.57 to $1558.48 respectively because you are getting a take home pay raise
To sign up for our Down Payment Assistance Program, simply complete the Enrollment Application
* Certain restrictions apply. You must meet certain income and debt to income ratio guidelines. Inquire for more details.
** These figures are based on lending guidelines as of 25JUL10 and are subject to change without written notice.
*** This is for informational purposes only. While these numbers work accurately for 99% of our clientèle, we are not CPAs or tax attorneys and you should always consult a qualified professional when making any tax decisions.
If you have not already, make sure that you check out our rent to own homes listings today!
