By Charity Ohlund
In last week’s post, I went over some of the pros and cons of mortgage down payment assistance programs. While getting ‘free’ money sounds enticing, a harsh reality remains that few things in life are truly free. You may end up paying a higher interest rate or be subject to repayment terms if you sell or refinance your property. On the other hand, if you take the time to truly understand your options and work with an experienced mortgage professional, you may find that down payment assistance is a viable option for your unique situation.
Down Payment Assistance Programs
Today, I’ll cover the three down payment assistance (DPA) programs available through Fountain Mortgage.
On the Kansas side of the state line, homebuyers can utilize this state-wide program to obtain a grant to help cover down payment and closing costs. Unlike the MDHC program, KansasDPA does not require repayment. The grant amount is based on a percentage of the total loan amount and is adjusted based on income levels.
This loan is a 30-year, fixed rate, conventional loan. The borrower puts 1 percent down. The lender contributes 2 percent toward the down payment, giving the borrower 3 percent equity at closing. This loan is available with no monthly mortgage insurance.
This loan is for single-family homes only (no condos, townhomes, etc.), and the borrower may receive a maximum of $5,000 from the lender to be used toward the down payment only. The 1 percent down payment may come from gift money from family members.
As you can see, there are several options for buyers to explore. Saving up for a down payment is the biggest obstacle that most first-time homebuyers cite when asked what’s stopping them from making a home purchase. It’s essential to talk with a Certified Lender to explore all your options, as each family’s situation is unique. Down payment assistance (along with zero-down payment options for VA and USDA loans) can be a valuable tool to get you into your new home faster. Reach out to our team today for a free consultation!
This weekly Sponsored Column is written by Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating, and thus empowering, clients to make the best financial decision possible for their situation.
Original reporting: Johnson County Post (Overland Park) — read the source article.
