We get this question a lot, and with the ever-growing popularity and flexibility of FHA first mortgages we thought we’d shed some light on how down payment assistance programs can work with FHA loans. The Federal Housing Administration (FHA) – which is part of HUD – insures the first mortgage, so your lender can offer you a better deal. When using an FHA loan, the required down payment for a purchase transaction is currently 3.5%, an amount many homebuyers may struggle to save for any number of reasons. Down payment assistance programs can offer qualifying participants thousands of additional dollars to help with this down payment requirement, essentially requiring much less out of pocket for the homebuyer to put down on a home.

Many housing finance agencies or local municipalities have assistance programs that can help with closing costs, prepaids and sometimes even rehab work (if you have your eye on a “fixer–upper”). FHA has its own programs and incentives to help with purchasing a foreclosure and with more real estate owned (REO) properties on the market, Realtors and lenders can often help by using homebuyer assistance programs alongside FHA loans.

FHA loans offer some great benefits, especially for first-time homebuyers: lower down payment amounts, more flexible underwriting terms, lower mortgage insurance rates. But you shouldn’t stop your research there. Find out what kinds of additional assistance is available in your area, and start asking your Realtor, lender and housing finance agencies that offer these programs about incorporating down payment assistance into your home financing options. In fact, FHA is one of the most common first mortgages tied to “layering” assistance programs.

 


Connect with a Loan Officer

Loan Officer Thomas Johnston

Loan Officer Thomas Johnston | NMLS# 1583463; Arizona, California, Oregon, Texas and Washington

Thomas is your mortgage loan originator, who works side by side with a strong team that shares the same devotion to excellence.
Experienced, knowledgeable, and always up to date on the industry's latest products, Thomas strives to exceed the customers' expectations in each and every transaction.

Do you have any questions? Please call 866-610-6025


Many local assistance programs can be used together with each other or in conjunction with an FHA loan. These additional down payment assistance programs can take a second or even third lien position, meaning the first mortgage (your FHA loan, for example) is the primary lien, and the assistance programs take lower positions with regard to the security interest and repayment of the debt. By layering multiple assistance programs, homebuyers can find more assistance funds, achieve a lower loan-to-value (LTV) ratio on the home at the time of purchase and build long-term equity. However, the lien positions can be a challenging factor in the event that you decide to refinance the mortgage and you can have multiple repayment plans to manage each month, so be sure to engage the experts in your market for their advice and assistance.

I was just looking at your FHA loans and down payment assistance – can they work together? | Down Payment Resource website and see that your website has the potential to become very popular. I just want to tell you, In case you didn’t already know… There is a website service which already has more than 16 million users, and most of the users are looking for websites like yours. By getting your site on this network you have a chance to get your site more popular than you can imagine. Now, let me ask you… Do you need your site to be successful to maintain your way of life? Do you need targeted visitors who are interested in the services and products you offer? Are looking for exposure, to increase sales, and to quickly develop awareness for your website? If your answer is YES, you can achieve these things only if you get your site on the service I am talking about. This traffic network advertises you to thousands, while also giving you a chance to test the network before paying anything. All the popular websites are using this service to boost their traffic and ad revenue! Why aren’t you? And what is better than traffic? It’s recurring traffic! That’s how running a successful site works… Here’s to your success!


Connect with a Loan Officer

Loan Officer Thomas Johnston

Loan Officer Thomas Johnston | NMLS# 1583463; Arizona, California, Oregon, Texas and Washington

Thomas is your mortgage loan originator, who works side by side with a strong team that shares the same devotion to excellence.
Experienced, knowledgeable, and always up to date on the industry's latest products, Thomas strives to exceed the customers' expectations in each and every transaction.

Do you have any questions? Please call 866-610-6025

FHA Loans and Down Payment Assistance-Can They Work Together? is available in the following areas/cities