Five Years, Five Ten Fifteen Twenty Thousand Dollars, Three Four Five Six Percent discussed on Mark Levin

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Of but all of them essentially provide down payment or closing cost help at closing and that's the key that people need to know so Sean right now let's look at just some representative programs around the country and we should remind people it might be different where you live but what kind of money are we talking about in different programs in different places there are a couple of common trends so a lot of state or local housing finance agencies will offer a percentage of the loan or percentage of the purchase price as down payment assistance though three four five six percent of the purchase price that's a big deal especially in a lot of higher cost more it's and there are another subset of programs that may offer a fixed dollar amount five ten fifteen twenty thousand dollars and it gets higher and higher cost markets but those are pretty standard numbers and in fact nationwide when we analyse our database we commonly see that between eight and ten and twelve thousand dollars it's sort of the average range of assistance nationwide that's a lot of money then adds up to a big portion of the down payment that is a lot of money now earlier you mentioned that there are different types of down payment assistance let's go through those really quickly so that people know what we're talking about first of all Sean tell us what is a down payment assistance grant a grant means that the funds provided for down payment and closing costs help are forgiven at closing there is no second mortgage there is no lien on the property it is essentially a gift at close this sounds amazing and next up what about the types of down payment assistance that are forgiven over time like you have to live in the house a certain number of years right that's the primary about common stipulation is that you owner occupied the home if they stay in the home for let's just say five years at the end of those five years that debt is forgiven and essentially becomes a grant because the second lien is wiped out the debt is forgiven and the equity is yours as the homeowner that is wonderful and as I understand it there's also a type that requires you to pay it back only in the future when you sell the house correct which means they get the up front at closing down payment help so they get into the home now they accrue equity over time to pay down their mortgage over time and when it comes time to sell that's when the principle of that down payment assistance may become do interesting and you know a lot of people listening to this right now our thinking well that's great but I make too much money to qualify for something like that you'd be surprised all of those listening at how flexible are how high the income limits can be for a lot of the down payment assistance programs available across the country talk to a loan officer who works with these programs and understands down payment assistance in your market and just see ask the question thanks for your options another thing that I bet a lot of people were thinking right now is well I'm not a.

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