Down payment assistance programs

I just checked out the website and sounds like a great idea, BUT if you don't have enough for a downpayment why would you want to buy a house? Personally I would want at least 20% of purchase price IN THE BANK (not including down payment).So for a $100K house I want $20K AFTER closing, down payments etc., in the bank.
I'm not knocking you, just giving my point of view.

 

Try to search on the HUD website and that can provide you with some information.

Call your local Consumer Credit Counseling Office, United Way, Housing Authority, City or County community assistance programs they may have some info.

I used to be a State employee and the population I dealt with had the same questions. And that's how I would get my info.

The housing auth. knew what I talking about right away. It depends on the city and county because they may have different programs. Also, some lenders have their own programs because of the Community Redevelopment Act (CRA).

There is money out there, but you have to go through alot of paperwork, verify assets, etc. It depends on where you live.

 

I did an ameridream FHA loan. I actually received $1800 dollars to buy the house after all was said and done. We received 6.85% financing and 5.85% for the first yr. The only money I put down was for my loan application which was 300.00. Plus we didn't have to buy in bad area. The area in which we bought is actually the hardest area to find a house. Schools are ranked #1 in the area and is growing fast. Some loans you have to buy in areas in which they are trying to improve.

 

In Ca we used a program called Cal Gold for downpayment assistance. It allowed us to buy a house without 20% or even 10%. We paid about $500 and received almost $200 back after closing.

This program allowed us to buy a nice house, get out of a poor rental, without waiting who knows how long to save up a big downpayment.

If you have cleaned up your credit reports, have close to $1,000 saved and make enough money to pay the payments then use these programs to buy a house.

Just my 2¢ but I am really glad I did.

John

 

_______________________________________
I just checked out the website and sounds like a great idea, BUT if you don't have enough for a downpayment why would you want to buy a house? Personally I would want at least 20% of purchase price IN THE BANK (not including down payment).So for a $100K house I want $20K AFTER closing, down payments etc., in the bank.
I'm not knocking you, just giving my point of view.

KHM
_______________________________________

KHM,
Respecting your opinion, I have to disagree with you. I currently live in an area where it seems like an obstacle just to own a shack/home due to escalating real estate costs. Understanding that having 20% of the purchase price would not only help in paying the lowered monthly mortgage but would also avoid the dreaded PMI, I truly don't think folks should have to wait until they have 20% downpayment to purchase a home. If that is the case I wonder how many people would be actual homeowners. Just the tax benefits, rapidly escalating cost of renting and wealth of first time buyer programs would strongly encourage me to enter the field of homeownership with little or no downpayment.
JMHO
ledo

 

Ledo-
I wasn't saying I want to put 20% DOWN on the house, I was saying that I won't buy a house unless i KNOW when all is said and done, closing costs, fees, downpayment (I want to put 3% down), if I don't have 20% LEFT OVER IN THE BANK, I'm NOT gonna buy a house. I was using $100K as an example. Does that make sense? If I have that kind of money in the bank before buying a home I would seriously doubt ameridream would help me, if they do great, but I'm not gonna go house shopping (price ranges here are $100K-300K) with just a couple thousand in the bank. I don't want to have to worry about having a mortgage and maybe getting laid off. Come to think of it, the reason why I am going to do it this way is, my hubby and I work together and we know the owner very well and I know financially he's not doing so well, and he would get rid of both of us and not just one of us. Know what I mean?

 

Completely understand. Thanks for the clarification.

ledo

 

I know someone that used the Ameridream program too. They have a beautiful house in a beautiful neighborhood. Those programs are out there for people who can't save for a down-payment much less large amounts of emergency money. If you think about it... if one could get out of rent payments to pay a mortgage for less than $1000 down... where is the down part to this situation. If you get into financial trouble due to misfortune.. a mortgage is usually more forgiving being that a landlord will usually have you on the street in 30 days.

 

Steff,

Check futurehomeassistance.com (sorry, don't know how to do the fancy links). Also check to see if your state offers some type of closing cost/downpayment assistance program.

In addition, check out naca.org (Neighborhood Assistance Corp of America)--they have offices nationwide and a very good mortgage product--no downpayment. I think you are required to use their realtor and join AFTER you close--$3,000 fee payable at $50/month. However, they have a motherload of money from Fleet, it's a non-profit, and their loan has no closing costs, appraisal fees, etc.

I didn't read all the previous post. However, I would never dump 20% into a house. If I have it, I would rather invest it.

I had a contract on a house which fell through. My loan product required $500 down and I did not want to put down a dime more. Why bother when interest rates are this low? It's all personal preference. As a law school grad, if I had an extra $30,000 sitting around, I sure as hell would not dump it in a house, I think it would help to diminish my 5 figure student loan debt!

What area do you live in ? There may be some other programs available from the city, or certain other neighborhood revitalization organizations. If I come across other info., I will post it.

cariba

 

I think it is wise to make sure that you have a cash safety net in place before you purchase a home, even if that is just mortgage payments. Could mean the difference between keeping a house and foreclosure.

cariba

 

I have to agree with Fat Jake.

We moved out of a small rental in a very busy and not so nice neighborhood into a large house in a nice quiet neighborhood with less than $1000 down and less than $5000 in the bank.

Our landlord had been mentioning selling the dump off and on for the 5 years we were there but we would never consider buying it. We started working on our credit about a year before and one day he called again and said maybe he would come over and help us paint the exterior so it would look better when he sold it. (He had never been to the house since we moved in)

That was it and after contacting a buyers broker to explore remote possibility of buying a house so we would not have to live on the edge anymore... three months or so later we bought this house and looking back I would not change anything except maybe to start sooner.

I don't know anyone who does not already have a house who has enough money in the back to have 20% left over after down payment and closing costs.

If you can afford the payments then buy a house. Sure you might lose your job, be downsized etc. but you could also be hit by a car and killed. Does that mean you don't drive?

Sorry, better stop. That is just my 2¢ and happy to be a homeowner.

John

 

I guess it's just my paranoia. I have seen 2 friends have their homes foreclosed on cause they bought a house with JUST ENOUGH left in the bank after buying it, then pink slipped within 2 years for both of them (2 separate friends/houses) However I have another friend that makes $15 an hour and so does her hubby, (now they make this when they started saving it was $11 or $12 hour) anway they saved $50K in 5 years. They gave up the little things, caller id, call waiting, HBO,etc. So I'm trying to learn from my friends mistakes. Another friend of mine just got laid off last week, so it ought to be interesting if her and hubby save the house.

 

Cariba, I tried both of those addresses and they don't work.

Could you please email the addresses I think I have hot links. When you type in the address it will automatically take me there.

Thanks

 

It is actually naca.com, not org. The other page does not appear to be available.
Cariba

 

I was reading about the Nehemia and Ameridream programs. Can someone, who has used them, tell me how this works... PLEASE..!!! Also... is there a catch 22 I need to know about..! I was wondering if it would be a good idea to use these people if you plan on moving in 5 years.

I really don't know how they work. Can someone please tell me more about them!

Thanks

 

My girlfriend just got approved, and she has a 100% LTV basically. It is a CHFA Loan. She got 6.875% She just has to pay closing. The house we are getting is 124k. She is a first time buyer, and makes less then 56k, I think those were the limitations. The only downside is you have to pay back some of the tax deduction if you sell within 9 years, prorated... So with some of these plans, you need to make sure you will stay awhile. We close end of March! its being built.

 

Thanks Radiohead

Can I ask how your wifes credit is? Do you know her scores and doesn't that apply to this program? I see you home is 124K but will they go more than that?

 

Yes, you can get a much bigger loan.. well probably about double.. here check this link, this is an example of this type of program, but there are many others too.

http://www.colohfa.org/hf_homestart_info.shtml