Down Payment Assistance Program Guidelines
The Down Payment Assistance program has very particular requirements compared to other loans. Learn more below to see if you can use this lown down payment option when purchasing a home.
1.5% Down Payment
This program offers a non-repayable grant of 2% which means you bring ONLY 1.5%.
This program requires a minimum 580 FICO credit score.
48.99% Max DTI
Your debt-to-income ratio should be no more than 48.99%.
Overview of the Down Payment Assistance Loan
The down payment assistance loan product offers a non-repayable grant of 2% to be applied for the down payment so you're only required to bring 1.5% to closing. This specific loan is only for property/home purchase.
This program certainly helps first time home buyers purchase a home. But this program also helps; Teachers/Educators, Nurses/Doctors, Firefighters/Policemen, etc.
Eligible terms for this program are 20, 25, 30 Years fixed rate. The qualification criteria for this program are a flexible option for those with below average credit scores. The property also must be a owner occupied.
And the borrowers must also complete the mandatory home buyer education course. The entity of which they take this course must be approved by the HUD/FHA and must be done online or in person.
Additional Benefits of this Down Payment Assistance Loan
There are additional pros of going with this program when purchasing your home.