Q: Why does this program exist?

A: The cities and counties participating in this program recognize that often, first-time homebuyers who might otherwise be able to afford a home are unable to buy because they aren’t able to afford the downpayment costs. Because these cities and counties recognize the importance of new homeowners, they are authorizing a select group of lenders to offer this downpayment assistance program to allow first-time homebuyers to purchase a home.

Q: Who is able to offer the downpayment assist bond program?

A: Honestly, not many lenders are authorized to offer this program. In fact, many loan officers don’t even know it exists. The program requires lenders to apply for participation and get approval in order to offer first-time homebuyers this particular program. I happen to work with a loan officer at National City Mortgage who can offer this program to you. By filling out the online form with your information, she will be able to contact you and get additional information she will need for your application.

Q: Is this money free, or what?

A: Yes, in most cases it is. However, there are several cases where you may have to repay the money upon selling your home. For you to have to repay this assistance money, you must meet ALL of these three conditions:

1. You must sell your home during the first 9 years of the loan. (Since the average American sells a home every 5-7 years, there is a strong possibility that you will meet this condition)

2. You must earn a profit on the sale of the property. (Since values traditionally appreciate, you will also likely meet this condition)

3. Your personal or family income must exceed an established income limit, adjusted for annual increases of 5% for each year the loan is in effect.

In most cases, homeowners will not meet the third condition. The established income limits are very generous and vary depending on the city or county where you are buying a home. Furthermore, if you re-finance your mortgage before you sell your home, you are automatically exempted from repaying the assistance originally given to you. In order to determine if your income falls within the established income limits, please contact us directly by filling out the online form.

Q: Is there a limit to type of home I can purchase with this program?

A: You must purchase a single-family home or a multi-family home of no greater than 4 units and you must occupy the entire property or one of the units. There is also an upper limit to the value of home you can use this program with, but in most cases, the upper value limit is rather high. For a current list of maximum purchase limits, please fill out the online informaiton request form.

Q: Is this program only for first-time homebuyers?

A: In most cases it is. However, there are certain areas known as “targeted” areas that each city and county has set aside for economic development. If a home you are purchasing falls inside one of those targeted areas, you may qualify for this program even if you aren’t a first time homebuyer. If you believe a home you are interested in might fall inside one of these areas, please submit the form for additional information.

Q: I haven’t owned a home in 5 years, do I qualify?

A: Yes you do. For the purposes of this program, a first-time homebuyer is defined as someone who has owned a home sometime over the past 3 years. If you haven’t owned a home during the past three years, you will qualify for this program.

Q: What’s the catch? Isn’t there usually a catch?

A: There isn’t one. There are no costs to apply. No pre-payment penalties and rates with this program are excellent. Contact us now for more information and a free credit analysis.