Has anyone worked with this program for assistance with down payment and closing cost and if so, what were the pros and cons of doing so..... Paperwork in the hands of underwriters as we speak and looking to use the funds I have for dp and cc to pay off outstanding collections......
I've never used this program, but I have used a program in Ohio that paid 2% of my down payment. I'll tell you the down side of doing so. They added .25% to my interest rate (although it was still amazingly low!) If I sell my house basically within the next 8 years I have to pay a "recapture tax". Check to see if any of these stipulations and others are in your program. Hope this helps. Sirrowan
Congrats on the home.. and I believe the recapture tax will only apply one.. if you make a profit on the home and or if you exceed the family income allotted for the program at the time of the sale. at least that is what it is here in Illinois
Recapture tax is only an issue if this is a state sponsored program. If it's a "seller participation" program the only draw back is convincing the seller to go along. Do you know which type of program this is, state or private?
