Down payment assistance programs continue to be a valuable resource for homebuyers across the country. The 0% Down Purchase program for qualified borrowers to receive a 3% down payment assistance loan, up to $15,000.
Here’s how it works:
- First lien mortgage meets LTV requirements per conventional guidelines.
- The lender provides a second lien mortgage for 3% of the purchase price, up to $15,000.
- The second lien has no monthly payment requirement and no interest.
- Second lien balance is due when the first lien loan is refinanced or paid off, whichever comes first.
- Payments on the second lien can be made throughout the loan term, but are not required.
How borrowers can qualify:
- Borrowers must be at or below 80% of the Area Median Income (AMI) for the address of the property they are buying and meet Home Possible® guideline requirements.
- For very-low-income borrowers whose qualifying income is at or below 50% AMI (VLIP borrowers), they will receive a $2,500 credit as part of the 3% assistance
- This credit does not need to be repaid by the borrower and lowers their debt obligation from the second lien
- 620+ FICO and LTV must be equal to or greater than 95% LTV, up to 97%
- For very-low-income borrowers whose qualifying income is at or below 50% AMI (VLIP borrowers), they will receive a $2,500 credit as part of the 3% assistance
—OR—
- At least one borrower must be a first-time homebuyer and meet HomeOne® and UWM’s guideline requirements.
- First-time homebuyer is defined as someone who has not had ownership interest in a home in the last 3 years
- 700+ FICO and LTV must be greater than 95%, up to 97%
Call or email me for more information.
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