Do I have to pay back the 2nd loan down payment assistance in the future?
No! As long as you remain in your home, do not refinance, and make three years of mortgage payments, your 2nd loan is completely forgiven. This is your incentive to take the exciting step to apply and qualify for a home mortgage.
How do I find out whether I qualify?
Your lender will help you explore your specific income, debt, and credit factors. Unlike previous mortgage assistance programs you may have heard of, there is no requirement that you be a first-time buyer.
Your income can not exceed $139,200.
Do I still need to meet other guidelines?
Yes, as with any mortgage, you do need to meet the standard loan guidelines.
This program asks that you have a minimum FICO score of 640 and a maximum debt-to-income ratio of 45, and we also require that you complete a HUD-approved homebuyer education.
And even though a significant portion of your down payment will be supported by this program, you may need to bring some cash to the closing on your own.
For example, a house you might purchase for $300,000 might require 5% as the down payment plus closing costs, or $15,000. This program would grant you $14,250 of that amount, but you would need to contribute $750.