Down Payment Assistance May Be Available To You!

Dated: November 5 2021

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Down payment
money is out there.
We’ll help you find it.

Many home buyers are getting frustrated with the scarcity of affordable housing in Southern California and in some areas all over the country. Many have suspended their search to save money for a down payment.
What most don't know is that there are valuable programs that help first-time home buyers overcome their down payment challenges.

The three most common homebuyer programs are:

1. Down Payment Assistance(DPA). This is the most common program of the three. 78% of all homebuyer programs across the nation are aimed at assisting with closing costs. It's often government-funded or non-profit and sometimes directly through employers. The assistance often varies based on the price of housing in a certain market. Some are repayable and attached to the loan with (sometimes without) interest. Some are grants, a true gift which you don't have to pay back. Some programs defer the down payment until you refinance or sell the property. Others are forgivable with terms. Many of them do require a first-time home buyer's education course.
Eligibility based on:
- Income limits
- Sales price limits
- Property location
- Homeownership history
- Military service
- Profession

Advantages of a DPA.
- Lower DTI
- Lower LTV
- Improve mortgage insurance pricing
- Lower monthly payments
- Supplemental cash to close
- Retain savings/liquidity
- Increase purchasing power

2. Affordable First Mortgages. This is a mortgage option typically combined with DPAs and tax credits or reduced interest rates.
Advantages of Affordable First Mortgage: 
- Reduce buying costs
- Lower Monthly payments
- Lower Mortgage Insurance
- Increase purchasing power
- Expedite homeownership

3. Mortgage Credit Certificates. These are tax credits. This one is unlike the two mentioned above and is not available in every state or market but it's a wonderful opportunity to gain value over the life of the loan. It's a federal income tax credit, not a deduction. It has to be issued prior to closing of escrow but you get to use it every year for the life of the mortgage. I am not a tax expert so this benefit is better discussed in depth with your CPA.

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Cecil Austria

Cecil Austria and RE/MAX Liberty are North San Diego-based realty team, serving greater San Diego and Riverside County who pride themselves as VA specialists.Cecil Austria is a current member of the V....

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Down Payment Assistance May Be Available To You!

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