In a recent study by Fannie Mae, 55% of future homebuyers believe that homeownership is out of reach for them financially. In the same study, future homebuyers were asked to demonstrate their knowledge of the mortgage process and the affordable options available. Among respondents,73% were unaware of lower down payment options that range from 3% to 5% of a home’s purchase price. This is an important realization, considering that 31% cited not being able to come up with a down payment as one of the key challenges holding them back from homeownership.

Fannie Mae research also found that 64% of future homebuyers said that they expect mortgage lenders to educate them on the process, and 63% said they want mortgage lenders to show them the right mortgage options for their needs.

Finding the right resources for your clients can be tricky. Some down payment assistance programs are stand alone 2nd mortgages that can be attached to FHA and conventional loans, while others are a one stop 1st and 2nd mortgage mortgage underwritten at one lender for both. Most have income and 1st time homebuyer limitations but a few don’t have a maximum income limit. 

Because there are so many details when matching 1st mortgages with a DPA program, many loan originators don’t want to do this type of financing.

But the benefit for a buyer of having down payment assistance is there is little or no need for the seller to contribute towards closing costs.

At Clients2Homeowners.com, the Down Payment Assistance tab under Get Mortgage Ready introduces clients, loan originators and real estate agents to Down Payment Resource, a national down payment assistance database. The DPA Programs tab provides a searchable list of city, county SHIP and state DPA as well as proprietary wholesale programs. And the DPA FAQ’s tells you how to apply for down payment assistance.

For more information, go to the links provided above to get started. If you are a client, loan originator or realtor who wants to learn more about programs in your area, contact  Pam today, www.closewithpam.com or call 727-534-3445. 

Pamela M Marron, NMLS#246438

Innovative Mortgage Services, Inc, NMLS#250769