2018 Colorado Down Payment Assistance Programs

Colorado Down Payment Assistance Programs

If you are looking for Colorado down payment assistance when buying a home, you need to be aware of the different programs available. Here is the lowdown of the different programs that offer varying financial assistance programs for first time home buyers.

Colorado Housing and Finance Authority (CHFA) is the place to start. They have several programs with down-payment assistance ranging from $5,000 to $10,000 up to 3.5% of the purchase price.

Many counties throughout Colorado have programs. Adams county, for example, offers up to $7,000 for those who are purchasing property in the county for the first time. Arapahoe county makes $10,000 available as payment assistance for mortgage down payment of the second term. The Home Ownership Assistance Program in Aurora, Colorado, offers up to $10000 for those who are buying homes within the Aurora city limits.

Below is a list of Colorado Down Payment Assistance Programs:

No Down Payment Mortgages – mortgages that require no down payment

USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.

 

Low Down Payment Mortgages – mortgages that require up to 3.5% down payment

FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.

Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.

The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.

Colorado Down Payment Assistance Programs

CHFA Advantage Program This Colorado down payment program has the following requirements. If you have a minimum credit score of 680, you can qualify for a 30 year purchase loan with only 3 percent Colorado down (which can be a gift) and no mortgage insurance. Colorado borrowers will need to meet the income and purchase price requirements.

CHFA HomeAccess Second Mortgage For disabled home buyers who also need Colorado down payment assistance, the CHFA offers the HomeAccess Second Mortgage Program. This is a second loan of up to $25,000.

CHFA HomeOpener Program The HomeOpener program does not have any purchase price limits, and the income limits are set higher than the other programs. A 620 credit score is required and qualifying Colorado borrowers must contribute at $1,000 to the transaction. This Colorado down payment program can be paired with Colorado down payment and closing cost assistance.

CHFA Preferred Program This Colorado down payment program requires a credit score of just 620. Yet, rather than no monthly mortgage insurance, Colorado borrowers can qualify for reduced cost mortgage insurance. This Colorado down payment program has income and purchase price limits, and can be combined with the Colorado down payment and closing cost programs. However, the Preferred program with requires 3 percent Colorado down (must be your own funds) and Colorado borrowers must contribute a minimum of $1,000 towards the loan.

CHFA SmartStep Program SmartStep is a purchase program that features the lowest mortgage rates out of all Colorado’s programs. Colorado borrowers must meet credit score, purchase and income limits. Colorado borrowers can pair the SmartStep program with one of Colorado’s Colorado down payment/closing cost assistance programs or an MCC. Colorado borrowers must contribute at least $1,000 towards the transaction.

Down Payment Assistance Grant This Colorado down payment program grants up to 3 percent of the loan amount and doesn’t need to be paid back. The money can be used towards Colorado down payment, closing costs, building out your savings account, or to make improvements to your new home.


HUD Programs

The US Department of Housing and Urban Development (HUD) offers the following programs:

Good Neighbor Next Door Program

The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.

To learn more about the Good Neighbor Next Door Program, click here.

Section 184 Loan – The Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.

Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.

To learn more about Section 184, click here.

Colorado Housing Agencies

Colorado housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.

2018 Louisiana Down Payment Assistance Programs

Louisiana Down Payment Assistance Programs
Louisiana Down Payment Assistance Programs

Louisiana down payment assistance programs allow qualified homebuyers to own their own home with funds for down payments as well as other closing costs that might be associated with their purchase.

Whether you wish to live in an urban or rural environment, there are plenty of homeowner down payment assistance programs available to you. The state of Louisiana differs from many states in that down payment assistance is available for practically any purchase, anywhere. There are qualifications for this assistance, but there are generally two organizations that make this assistance possible and administer the programs. These are statewide and regional programs, the Louisiana Housing Corporation and the U.S. Department of Agriculture Rural Housing. Both of these organizations make down payment and closing cost assistance available to those who qualify.

Louisiana down payment assistance programs are available to urban residents through the Louisiana Housing Corporation, which makes down payment and closing cost monies available to those who qualify. The successful applicants for this program are from low- and medium income single families. Applicants do not necessarily have to be first time homebuyers to qualify for these funds, but they must meet certain income requirements established by the area to qualify. These income requirements are based on a sliding scale dependent on income.

If you so desire, living in a rural environment can be possible through a program set up and administered by the U. S Department of Agriculture Rural Housing Program, which makes monies available for down payment assistance for homes in a rural setting. This program offers successful applicants loans, grants, as well as loan guarantees. This program also offers funds to rehab homes so that they are safe, sanitary, decent, and ready for move-in.

Below is a list of Louisiana Down Payment Assistance Programs:

2018 Arizona Down Payment Assistance Programs

Arizona Down Payment Assistance Programs

Arizona down payment assistance programs helps potential homeowners buy their first property, without necessarily having the required down payment.

The Home in 5 Program gives you 5 per cent of the loan towards your down payment. It is however offered for residentials to be bought within Maricopa County only. You do not have to be a first-time buyer to qualify for this program, but you will need to submit paperwork to qualify.

The Home Plus Program for first time buyers. Just like the Home in 5 Program, you will have to meet credit requirements. The maximum home purchase price allowable for this program varies by county, and so you will need to check the exact amounts applicable in your county.

The Newtown Community Development Corporation has two different programs:

1. Individual Development Account – First-time home buyers only. You will receive a down payment grant of up to $15,000 dollars, and you must be within Maricopa County.

2. Community Land Trust program – With this program, you will purchase a completely renovated home at a significantly lower price. The price is lower since the land remains to be part of the Land Trust.

Maricopa County Homebuyer Assistance Program is restricted to Maricopa County. It is and administered by the Maricopa Human Services Department. It offers you up to $15,000 dollars in down payment assistance.

The Neighborhood Lift Program managed by the Neighborhood Housing Services, Phoenix.

Arizona Down Payment Assistance Programs:


Arizona Housing Agencies:

2018 Kansas Down Payment Assistance Programs

Kansas Down Payment Assistance Programs
Kansas Down Payment Assistance Programs

Kansas down payment assistance programs offer the First Time Homebuyer Program (FTHP), which makes monies available to those who qualify under the conditions of a sliding scale. Income is the primary qualifier for this program. Persons who are residents within the city limits of Topeka, Lawrence, Wichita, Kansas City, or Johnson County do not qualify for this program.

What Do Qualified Applicants Receive?

Loans for those who qualify range from 15 to 20 percent of the home’s purchase price, depending on your income. In addition to the income requirement, those who apply must also make a minimum investment of two percent of the home’s sale price. Applications for the program are completed by the lender who is working with the home buyer, and in turn files the completed paperwork with the FTHP for final approval.

Kansas’ FTHP has already helped thousands of new homeowners make their dreams of home ownership come true. And with the continuation of this program, there’s a good chance that the same monies will continue to make dreams come true in the future. Applications continue to be accepted by participating lenders.

Other Kansas down payment assistance programs include the Federal Housing Administration (FHA) loan. This loan requires the 3.5% of the purchase price as a down payment. The USDA insured Rural loan for farming properties. The VA loan for veterans of the Armed Forces. Each loan has many positives and negatives for borrowers to consider. Discuss each loan option with your mortgage lender to see which one allows down payment assistance programs. Most mortgage lenders may or may not be aware of the programs that currently available so you may need to visit several before finding the right lender.

Below is a list of Kansas Down Payment Assistance Programs:

2018 Minnesota Down Payment Assistance Programs

Minnesota Down Payment Assistance Program

For first time home buyers,  owning a property in Minnesota is a great idea, financing your property is can be a great challenge. This is because sometimes you may find yourself in a situation where you are tired of renting a house and want to settle into your own home but lack the funds to finance your new home. Worry no more as there are numerous Minnesota down payment assistance programs that can help you buy a home.

If you’re looking for a mortgage such as no down payment mortgage programs, FHA home loans or other low down mortgage programs, there are plenty of those. Bad credit holding you back? There are programs in Minnesota for those too. HUD has several programs for Minnesota residents as do housing agencies in Minnesota which have down payment programs, first time home buyer education and housing assistance.

Below is a list of Minnesota Down Payment Assistance Programs:

No Down Payment Mortgages – mortgages that require no down payment

USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.

 

Low Down Payment Mortgages – mortgages that require up to 3.5% down payment

FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.

Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.

The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.

Minnesota Down Payment Assistance Programs

Deferred Payment Loan Start Up Program are eligible for two loan options under the Deferred Minnesota down payment assistance plan: the Deferred Payment Loan (amounts ranging from $5,000 to $7,500) and the Deferred Payment Loan Plus (amounts up to $10,000 for Minnesota borrowers who meeting targeting criteria). Loan terms are equal to the first mortgage and come with 0 percent interest. Loans are to be repaid when the property is sold or refinanced, or when it no longer serves as the Minnesota borrower’s primary residence. Qualifying home buyers must have a minimum credit score of 640.

Monthly Payment Loan Program The Start Up and MCC programs are eligible for this Minnesota down payment assistance, which is the greater of either $5,000 or 5 percent of the purchase price or loan amount. Loans have 10 year terms with monthly payments. The interest rate is equal to the rate on the first mortgage. To qualify, Minnesota borrowers must have a minimum credit score of 640, and must meet purchase price and income limits associated with the Start Up Program.

Start Up Program First time home buyers can get a home loan at an affordable rate through this program. To be eligible, buyers must have a credit score of at least 640 and meet income and purchase price limits. Eligible Minnesota borrowers can also qualify for Minnesota down payment assistance and a mortgage credit certificate.

Step Up Program Repeat home buyers can qualify for a purchase loan similar to the Start Up Program. Repeat buyers, however, are only eligible for one of the two Minnesota down payment programs offered by the state.


HUD Programs

The US Department of Housing and Urban Development (HUD) offers the following programs:

Good Neighbor Next Door Program

The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.

To learn more about the Good Neighbor Next Door Program, click here.

Section 184 Loan – The Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.

Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.

To learn more about Section 184, click here.

Minnesota Housing Agencies

Minnesota housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.

2018 Rhode Island Down Payment Assistance Programs

Rhode Island Down Payment Assistance Programs
Rhode Island Down Payment Assistance Programs

The Rhode Island down payment assistance programs has been initiated to make the dream of owning their own house come true for residents of the state. It is particularly beneficial for the first time home buyers as they easily qualify for the program in case they haven’t owned any property in the past three years. Others who had owned property may avail different assistance program by the state.

The amount provided as assistance to the person can be used as initial pay down or even as closing costs. It can only be used for residential or commercial loans only by the person receiving it. There are various programs that are promoted by Rhode Island State for the needy home buyers, these include many city, county, and state programs along with the nationwide charity programs.

The buyer needs to keep certain things in mind while setting out to buy a property for his family. The down payment though may exist in most cases is not an essential 20% of the total value. It has come down considerably owing to the high realty prices in several areas. Moreover the assistance program has given a leeway to several people who are capable to pay monthly installments, but were lagging when it came to arranging a payout of $10,000 or more at the start of the mortgage term. Depending on the paying capacity, present loans, assets held, and the property in question it is easy for any lender to decide on the loan request. Once you are found eligible for the loan then you can simply apply for down payment assistance.

Below is a list of Rhode Island Down Payment Assistance Programs:

2018 Oregon Down Payment Assistance Programs

Oregon Down Payment Assistance Programs
Oregon Down Payment Assistance Programs

Oregon own payment assistance is a program designed to solve this problem and give more opportunities for people to purchase homes by providing access to cash to buy the home now, rather than waiting for a later date. Owning a home through Oregon down payment assistance programs is a possibility. There are several programs in Oregon with varying levels of down payment assistance. Each program has different guidelines.

People buying homes for the first time may take advantage of the Oregon down payment assistance. For first time home buyers to qualify for the program, they must have owned a property for the last three years. This is also open for all who have owned a property for the last 3 years.

There are several types of down payment assistance programs. They include charitable organizations and government subsidized programs.  Federal Housing Administration (FHA) loans allow for home buyers to be given down payment assistance in forms of gifts or grants. The programs are permitted to give cash gifts and grants to qualified home buyers; however it does not need prior approval from the FHA.

This program helps in strengthening the towns, cities and villages in Oregon by granting states and local communities funds so that they can provide housing and create jobs opportunities for people with low and moderate income. This program contains the following:

Disaster Recovery Assistance: It helps the cities to recover from presidentially declared disasters by allocating flexible grants to countries states, and cities.

Community Development Block Grant (CDBG) programs or State Administered CDBG: It allocates smaller units of local government that deals with community development.

Large City and County Programs or Entitlement Communities: It allocates annual grants to larger urban counties aiming to develop a viable through provision of suitable living environment, decent housing, and expansion of income opportunities for moderate and low income people.

Below is a list of Oregon Down Payment Assistance Programs:

2018 Utah Down Payment Assistance Programs

Utah Down Payment Assistance Programs
Utah Down Payment Assistance Programs

Home buyers in Utah have an opportunity to buy a home using several home buyer grants and Utah down payment assistance programs for their down payment and even closing costs. There are several down payment assistance and other little to no down payment programs available in this area. Such grants and down payment assistance offered by the government are available from many agencies, some of which are provided by the Federal Government while others are provided by the counties, states or cities. Some programs do offer reduced or no mortgage insurance and this helps in keeping the payment low.

The government gives up to $ 10,000 in grants to home buyers in Utah, that is, if one buys a home that is 29 years or newer, they receive up to $5000 and if one buys a home that is 30 years or older they can receive up to $ 10,000. First time home buyers in Utah are given grants with zero interest loans through the first time buyer no money down programs. These loans however, must be repaid once the home is sold. It may not be free money but it’s still a great deal because for as long as you use the house no interest is charged.

For home buyers in Provo, Utah County, they receive government grants of up to $20,000. If the home is in a targeted area, then you can receive up to $ 20,000 but if it’s not in a targeted area, you can receive up to $10,000. If you buy a home in Provo, Utah, it does not matter whether you are a first time buyer or not, the rates are fixed. The property must also be within Provo and must be one’s primary residence. There are no household income requirements however. This grant only becomes true after 15 years, this means that the buyer must live in the home for 15 years or repay the grant in full.

There are so many Utah Down Payment Assistance Programs to choose from and prospective buyers must not worry at all, since these programs cater for low, middle and high income earners.

Below is a list of Utah Down Payment Assistance Programs:

2018 California Down Payment Assistance Programs

California Down Payment Assistance Programs

Thanks to the many California down payment assistance programs available, you may be able to get help buying a home. The main program that consumers can qualify for is known as CHDAP. This is a loan that has to be repaid, but the repayment date is deferred and the interest is extremely low. The maximum amount is either 3% of the purchase price of the home or 3% of the appraised property value whichever is the least.

This type of California down payment assistance is only offered through a CalHFA approved lender. It is limited to only first time homebuyers in California. The property can be located anywhere in the state. To qualify for the down payment assistance program, the applicants must meet income and credit score guidelines. A home buyer education class must be completed either face to face or online.

To find out if you meet the income guidelines, use the charts offered online that cover the income maximums. They are broken down by the number of people in the family and also the county where the property is located in California. This chart helps a person or family to quickly determine if they meet that first but very important piece of eligibility.

The minimum credit score of the consumer must be a 640. With a couple, the credit score that is the highest can be used to meet that eligibility criterion. For those that have a lower credit score, there are free classes and counseling that can help them to successfully budget and to improve their credit score.
This can take time, but once it is done then they can apply for the assistance to buy a home.

Other stipulations of this California down payment assistance program are that all signers on the loan must reside in the home within 60 days. Some exceptions include those that may be on a military deployment. The property can’t exceed 5 acres and it can’t include a manufactured home on the property.

Below is a list of California Down Payment Assistance Programs:

No Down Payment Mortgages – mortgages that require no down payment

USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.

 

Low Down Payment Mortgages – mortgages that require up to 3.5% down payment

FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.

Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.

The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.

California Down Payment Assistance Programs

CalHFA Zero Interest Program ZIP is a deferred payment junior loan of 3 percent of the first mortgage loan amount which can be used for California down payment assistance.

Extra Credit Teacher Program The ECTP is an exclusive opportunity in California which provides deferred payment junior loans from $7,500 to $15,000 to assist with California down payment fees. The program is only available when used in conjunction with a CalHFA first mortgage loan, and is reserved for eligible teachers, administrators, classified employees and staff members working in California schools.

Homebuyer Down Payment Assistance Program The CHDAP is a deferred payment junior loan – up to 3 percent of the purchase price or appraised value, whichever is less. Financing can be used to cover California down payment and/or closing costs. Only California borrowers who are first time home buyers can qualify. Qualifying income limits and purchase price limits are set by county.


HUD Programs

The US Department of Housing and Urban Development (HUD) offers the following programs:

Good Neighbor Next Door Program

The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.

To learn more about the Good Neighbor Next Door Program, click here.

Section 184 Loan – The Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.

Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.

To learn more about Section 184, click here.

California Housing Agencies

California housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.

2018 North Carolina Down Payment Assistance Programs

North Carolina Down Payment Assistance Programs
North Carolina Down Payment Assistance Programs

North Carolina down payment assistance programs help first time home buyers in realizing the American dream of owning a home. These programs include the down payment assistance program and the mortgage credit certificate.

The two programs are unique in nature and aim at helping the different classes of people depending on their income levels. All the North Carolina down payment assistance programs beneficiaries are given a tax credit of $8000 per year. This is meant to spearhead the country’s economic stimulus programs which encourage people to live under good housing conditions.

First time home buyers are people who might not have owned or occupied a personal home within a period of three years or people who had previously owned a home and sold it out for a period exceeding three years. Further, the residential property which you aspire buying must be the primary residence. In order to benefit from this program, one must attend a home buyer education counseling program with a certificate indicating completion. Every down payment assistance program has requirements which vary from program to program.

North Carolina mortgage credit certificates are federal tax credit program aimed to assist the low and moderate income earners to buy their own homes. It is the second part of the North Carolina Down Payment Assistance Programs. People who fall under this particular program receive a tax reduction on their annual gross income. The gross income is the key determinant for identifying the beneficiaries. This income is summed up for everyone living in a beneficiary’s residency aging eighteen years and above. People who fall in this category are allowed a twenty percent claim on their mortgage interest rates paid per year. Saving up to $2000 on taxes.

Below is a list of North Carolina Down Payment Assistance Programs:

No Down Payment Mortgages – mortgages that require no down payment

USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.

 

Low Down Payment Mortgages – mortgages that require up to 3.5% down payment

FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.

Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.

The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.

North Carolina Down Payment Assistance Programs

NC Home Advantage Mortgage Program This North Carolina down payment program is for a first time home buyer (or a move up buyer) in North Carolina has annual income under $85,000 and a credit score above 640 they will be eligible for the Home Advantage Mortgage. This first mortgage loan is paired with North Carolina down payment assistance. Current loan terms are 30 year fixed rate mortgages with zero discount points and 1 percent origination fee. The North Carolina down payment and closing costs assistance is an interest free deferred and forgivable second mortgage loan which can amount to up to 5 percent of the first mortgage amount. Repayment of the North Carolina down payment assistance is only required if a North Carolina borrower vacates the home within 15 years.


HUD Programs

The US Department of Housing and Urban Development (HUD) offers the following programs:

Good Neighbor Next Door Program

The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.

To learn more about the Good Neighbor Next Door Program, click here.

Section 184 Loan – The Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.

Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.

To learn more about Section 184, click here.

North Carolina Housing Agencies

North Carolina housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.