Don’t worry, there are down payment programs out there you may not be aware of that are available to you!

A lot of first time home buyers are not aware of these down payment assistance programs.  Some home buyers think that they won’t qualify for the programs, or it’s too much work and not worth the effort. Different lenders have different options available to first time home buyers. It’s definitely worth checking with lenders to see what program(s) you may qualify for as a first time home buyer.

These are some helpful tips on how to find a down payment assistance program that is right for you.

Online Search-Down Payment Assistance Programs

You can check a website called Down Payment Resources which will ask you some basic questions like the home address, are you a first time home buyer, are you American Indian, are you a veteran etc and then search for programs that you may qualify for. (More helpful first time home buyer information here)

Locally in the Pacific NW, you can also check online at HOWNW.com for local non-profits, grants, tax credits and different programs available to help with down payments and or closing costs.

Special Down Payment Assistance Programs For Home Buyers

There are special programs out there that offer assistance based on your profession. If you’re a firefighter, police officer, in healthcare, a civic employee or an educator, there may be a certain program that you qualify for. If you’re a first time home buyer or have not owned a home in 3+ years, you may qualify for a first time home buyer program.

Local Neighborhood Stabilization Programs

The Neighborhood Stabilization Program was developed by the U.S. Department of Housing and Urban Development (HUD). It was a response to the residential foreclosures adversely affecting the housing market beginning in 2007, known as the “Great Recession”.  The purpose of the NSP was to stabilize neighborhoods with high inventories of foreclosed residential properties by providing a financial incentive to income eligible homebuyers and funds to purchase and rehabilitate properties to qualified non-profit developers. (i.e. Habitat for Humanity).

First Time Home Buyer Government Programs

Depending on the community, State or County that you plan to buy in, there may be government assistance programs available to you. These include FHA (Federal Housing Administration) or VA (Veteran’s Affairs). Both have home loan programs and may offer down payment help. You may also find assistance options by checking with your state Urban Development and Department of Housing websites.

Keep in contact with a preferred lender as these programs change frequently. The lender or your realtor can keep you up to date.

More Useful tips here:

Small Down Payment Doesn’t Mean The Buyer is Not Qualified-Via Bill Gassett

No Money Down Mortgage Options-Via Luke Skar

5 Ways to Save Money for a Downpayment on a Home-Via Sharon Paxson

Local Rochester NY First Time Home Buyer Programs and Grants-Via Kyle Hiscock

How To Save For A Down Payment On A Home-Via Michelle Gibson

How To Budget When Buying A Home-Via Eileen Anderson

About the author

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, I haven’t done my job. Success is not measured through achievements or awards but through the satisfaction and repeat/referral business of my clients. My goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland, OR., living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown, St. Johns, Clackamas and West Linn, I’m very knowledgeable of the many different neighborhoods our city has to offer.

The post Research How to Find Down Payment Assistance Programs appeared first on JD PDX Real Estate | Your Portland Realtor.

Conventional FHA VA loans – Are you scratching your head trying to figure out which type of mortgage is going to best suit your needs in Portland Metro Area? For most borrowers, there are three major loan types: Conventional, Federal Housing Administration (FHA), and Veterans Affairs (VA). Here is some information on all three to help you decide which loan is perfect for you. You will definitely want to shop around for the best rates for your situation by checking with your bank and a couple different mortgage brokers.

Conventional Loans

Conventional FHA VA loans – If you have great credit, a conventional loan could be your best bet and qualify you for the most competitive interest rate. If you have a credit score in the 700s, have a down payment of 5 to 20%, and have a low (less than 40%) debt-to-income ratio (the percentage of your monthly income allocated to debt, such as mortgages, credit card payments, or other loans).

With a conventional mortgage, you’ll have fewer barriers to break down and can usually obtain one quicker than an FHA or VA loan.

In addition to having a down payment, you will also likely need to have the cash to cover closing costs, lender fees, and mortgage insurance if you don’t meet the minimum down payment requirement.

1st Time Home Buyer Programs

Federal Housing Administration FHA Loans

Conventional FHA VA loans – If you have a low credit score (lower than 600), a small down payment of around 3.5%, or if your mortgage payments will account for a significant portion of your paycheck, an FHA loan may offer you some flexibility.

The key differentiator with FHA loans is that the FHA provides insured mortgages, and doesn’t actually lend money. As a borrower, you could be eligible to spend up to 57% of your total income on monthly debt obligations; such as your mortgage, auto loans, child support, and credit card payments.

The flexibility of FHA mortgages has some associated costs; 1.75% of the loan amount is due at closing, along with an annual fee, around 0.8%. If your financial situation improves or if you build equity in your home, the only way to eliminate these FHA fees is to refinance.

Veterans Affairs VA Loans

Conventional FHA VA loans – If you or a qualifying family member is active in the military, or a veteran, you could qualify for a VA mortgage with 100% financing. If you’re the spouse of a military member who passed away while on active duty, you could also apply. There’s no need to be a first-time buyer so that you can get a VA loan in the future as well. There’s also no limit to how much you can borrow with a VA loan, but there are limits that may affect you based on your state and county, and how much of a financial responsibility you can handle.

A fundamental difference with VA loans is that the VA doesn’t lend money, it backs the loans made by private lending institutions. You may still need cash for an earnest-money deposit, and closing costs. A seller is allowed to cover the closing costs, but it’s not required. Additionally, if you’re securing a VA loan for a primary residence, you won’t require a down payment, but there’s a cost of 2.15 to 3.3% that you (or the seller) will need to pay in advance. The good news is this fee can be rolled into the mortgage.

First Time Home Buyer Guide

Not sure which type of loan you should apply for? I deal with all types of home buyers. If you have a question, please get in touch with me.

The post You Need to Know Differences Between Conventional FHA and VA Loan appeared first on JD PDX Real Estate | Your Portland Realtor.