This Down Payment assistance program is set to renew in the first quarter of April 1, 2010. It would be prudent to start lining your clients up for 2010 due to the limited number of loans that will be approved. These funds do not last long. So act now and plan accordingly. This program will provide matching funds for first-time homebuyers on a 5 to 1 match scale. For example, if a buyer puts 1,500 of their own funds in the transaction the buyer is eligible for the entire $7,500.The funds are available to all eligible members on a homebuyer-by-homebuyer, first- come, first-served basis during an annual offering cycle. Loans will be offered using this program until the maximum set-aside is exhausted or the December 31, 2010, whichever occurs first.
Some of the eligibility requirements for home buyers are as follow;
Funds are only available to first-time home buyers.
A homebuyer must owner-occupy the property.
A homebuyer must contribute at least $500.
A homebuyer must have an income at or below 80 percent of the area median income, adjusted for family size.
No cash back at the table
Gifts are only allowed from family members.
Co-borrowers are not required to reside in the home.
This is a forgivable loan if the homebuyer resides for 5 years.
