Davidson Realty, Inc.

Is a Down Payment Assistance loan right for you?

October 15, 2019

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Posted by in News, Northeast Florida Market Trends

Not having enough cash to make a down payment on a home is a common concern. But it doesn’t have to be the end of the road! I recently spoke with Mark Sherman of Atlantic Trust Mortgage, who provided valuable insights on another option: a DPA (Down Payment Assistance) loan.

 

Mark said in addition to understanding the ins and outs of traditional loan products (e.g. Conventional, Jumbo, USDA, VA, FHA), mortgage brokers are also responsible for being well-versed in a variety of niche and first-time homebuyer products. This includes knowing how and when these alternative products are valuable to buyers.

 

Key among these products is the DPA loan. Though there are 3% down, 3.5% down and even 100% conventional, government and USDA financing options, some buyers still can’t cover the down payment and closing costs. However, they might have good credit and the necessary income to qualify for the monthly payment.

 

For these buyers, Mark says the DPA portion of their financing is provided as a “second” mortgage “grant” that requires no payment (or a reduced interest-only monthly payment). Then they can apply the funds from their “grant” to their down payment and closing costs. In many cases, the buyer needs no cash at closing.

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2018 Down Payment Assistance Program

April 12, 2018

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Posted by in News

I’m Troy Silhan, Production Manager at Bank of England Mortgage and this is my very first blog post. Today I wanted to talk to you about our new Down-Payment Assistance program called the BOE100. The difference I’ve found with people buying and not buying is being able to get a down-payment together. This is our way to help make a difference to those in that situation. Here’s a few other reasons why I like this program:

  1. You don’t have to be a first time homebuyer. Unlike the FL Bond you could actually even own a home currently and still use this program to purchase a new place.
  2. Unlike the Bond $7,500 program, this is forgiven after 36 months. The bond has to be paid back.
  3. The Debt to Income Ratio is also much higher than compared to the FL. Bond and USDA. For USDA you have a max DTI of 41%, while for Bond it’s 45%. Using the BOE100 it goes up to 55% for the Debt to Income. Allows someone to find more home with their monthly income and monthly debts.

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