Down payment and closing cost assistance
One of the most challenging parts of buying a home today is coming up with the money for the down payment and closing costs. A great way to make that more affordable is by using a down payment assistance program (DPA). These programs provide eligible homebuyers assistance to purchase a new home. The funds can be in the form of a grant, low-interest mortgage loan, or other incentives to help a buyer purchase a home.
Mortgage Equity Partners has partnered with many different states to help homebuyers. We also offer our own DPA program for all homebuyers. These programs are sometimes limited in funds or time periods so its important to contact one of our experienced loan officers that can tell you what is available in your area.
MEP Advantage Down Payment Assistance Program
Mortgage Equity Partners offers a down payment assistance (DPA) program to help homebuyers who may not be a great fit for state and local DPA and bond programs. We have partnered with a well-established lender to be able to provide down payment assistance through The National Homebuyer’s Fund, a DPA non-profit benefit corporation.
The MEP Advantage DPA Program is designed to increase homeownership opportunities for low-to-moderate-income homebuyers. The funds provided through this program can help subsidize the additional money needed for down payment and closing costs and may help turn homeownership dreams into reality, even for those facing financial constraints.
Our program has 2 options that provides 100% financing of a home’s sales price as per FHA guidelines. With an FHA loan requiring a down payment of 3.5% of the home’s sales price, the MEP Advantage DPA program can be used to cover the rest.
MEP DPA Option 1
Option 1 is a second lien with an interest rate equal to the first note rate plus 2%. It has a 10-year loan term but can be payable upon sale, refinance, or payoff. The total loan amount is 3.5% of the lesser of the sale price or appraised value.
MEP DPA Option 2
Option 2 is a second lien forgivable loan with an interest rate of 0%. The payments are deferred, and no interest accrues. This loan is forgivable after 10 years. The total loan amount is 3.5% of the lesser of the sale price or appraised value.
As you can see, this program is a great tool for homeowners in today’s market who want to buy a home but are being impacted by rising home prices and lack of disposable income for down payment and closing costs.
Additional features of the MEP Advantage DPA:
- The minimum FICO score for this product is 600.
- MEP does not require that the homebuyer be a first-time homebuyer, but homebuyer education is required by at least one occupying home buyer.
- The property types that can be purchased using this program include single-family residences (1-unit), duplexes, some manufactured homes (check with your loan officer on this), PUDS, Townhouses, and some condos (check with your loan officer on this). Note: MEP’s Advantage DPA program is not used on 3–4 unit properties.
Chenoa Fund®
The Chenoa Fund® is a national down payment assistance program provided by CBC Mortgage Agency and administered through authorized lenders like Mortgage Equity Partners. The program is designed to increase creditworthy borrowers’ access to homeownership. Based on their core belief that everyone deserves access to affordable housing, they offer Down Payment Assistance programs paired with FHA Loans to provide a 100% financing option.
Under the program, borrowers who meet eligibility requirements may receive a second mortgage to cover the minimum down payment of 3.5% when purchasing a home with an FHA loan.
Here is an overview of the Chenoa Fund®
Chenoa Fund® DPA For FHA loans offers one product with a repayable and forgivable option. For all products, the borrower will need to have a credit score of 600 or higher.
Repayable: This loan has a 10-year term with an interest rate matching the interest rate on the FHA first mortgage. This loan does require a monthly payment on the second mortgage.
Forgivable: This loan has a 30-year term with an interest rate of 0% (0% APR). This loan does not require a monthly payment on the second mortgage. Forgiveness is determined by the DPA amount:
- 5%: Forgivable after 36 consecutive, on-time payments on the FHA first mortgage. This forgiveness period resets if the borrower makes a late payment, but the borrower has the full 30-year term to meet the forgiveness conditions. This loan may also be forgiven at the end of the 30-year term if the previous forgiveness condition has not been met.
- 5%: Forgivable after the initial 120 consecutive, on-time payments on the FHA first mortgage. This forgiveness period is terminated if the borrower has a payment that is 60+ days late, but the loan will remain with a 30-year term, 0% interest rate (0% APR), and no monthly payment.
Both forgivable loan options may be forgiven at the end of the 30-year term if the previous forgiveness conditions have not been met, even if the borrower made late payments on the FHA’s first mortgage. If it is not already forgiven, the loan must be repaid upon transfer of ownership or refinance.
Delaware State Housing
With the catchphrase “Kiss your landlord goodbye!” Delaware State Housing Agency (DSHA) keeps up to its goal by helping both first-time and repeat homebuyers. With their Welcome Home suite of programs they focus exclusively on first-time homebuyers offering qualified applicants several different resources (funding for some programs limited).
Initial qualifications for the Welcome Home suite of programs:
- MUST be a first-time homebuyer to qualify for this program.
- Minimum credit score of 620
- Purchase Price Limits for Single Family Homes (varies per county)
For applicants who exceed the income limits for Welcome Home, they offer the Home Again suite for first-time and repeat homebuyers:
- Minimum credit score of 620
- Purchase Price Limits for Single Family Homes (varies per county)
As with many state housing programs, there are a lot of options available and you may be more qualified than you think. If you want to buy a home but don’t think you have enough money for down payment, think again because we have people buying homes using the DSHA loan programs with very little money out of pocket. To learn more about these programs reach out to a qualified Delaware loan officer today!
Florida Housing
Florida Housing’s First Time Homebuyer (FTHB) Program offers 30-year fixed rate FIRST mortgage loans to first-time homebuyers and qualified veterans in Florida.
This program uses income and purchase price limits to determine eligibility.
Potential borrowers must:
- Complete a Homebuyers Education Class
- Qualify for a Mortgage loan and a qualifying FICO Score
Florida Housing also offers down payment and closing cost assistance in the form of a second mortgage loan to assist eligible homebuyers with their down payment and closing costs. Down payment assistance is only available when used in conjunction with Florida Housing’s first mortgage loan. Down payment assistance is NOT available as “stand-alone” down payment assistance. It is only available when used in conjunction with one of Florida Housing’s Homebuyer Programs.
The Mortgage Credit Certificate (MCC) Program offers eligible first-time homebuyers a nonrefundable Federal income tax credit which can be utilized with a lender’s first mortgage. The MCC reduces an eligible borrower’s Federal income taxes and, in effect, creating additional income for the borrower to use in making mortgage payments or other household expenses. Florida Housing’s Program offers a tax credit amount of up to 50%, based on the loan amount.
Contact one of our Florida Loan Officers to get started today!
Georgia Dream Homeownership
The Georgia Dream Homeownership program is available to eligible first-time homebuyers in certain Georgia Counties. One of the biggest hurdles to homeownership is coming up with the down payment. The Georgia Homeownership program provides $5,000 in assistance to eligible borrowers. If you are a public protector, educator, health care provider, active military, or if you are living with a family member that is disabled, there is a $7,500 down payment option.
There are some eligibility requirements:
- First-time homebuyer
- Meet maximum household income limits
- Meet minimum Credit requirements
- Live in certain geographic areas
- Attend a counseling session
Maryland Housing
The Maryland Mortgage Program is designed to make it easier for first-time and repeat homebuyers to purchase new homes. MMP’s mortgage programs are tailored to address Maryland residents’ different financial needs and support homeownership in specific geographic locations. They include low-interest first mortgage options, down payment assistance loans, and grants.
The programs include:
The 1st Time Advantage 5% DPA – First time homebuyers may be eligible for a Down Payment Assistance (DPA) loan equal to 5% of the first mortgage in a zero percent deferred second lien. In addition, 1st time advantage loan offers competitive interest rates for FTHB.
Flex – Similar to the 1st Time Advantage loan, Flex Includes down payment assistance in the form of a non-interest loan that must be repaid or a grant. This program is open to repeat buyers and has competitive 30-year fixed rates.
Home Ability – Down Payment Assistance for the disabled. A conventional loan product provides up to 95% LTV in a first lien and up to 25% (max $45,000) in a second lien to assist with down payment and closing costs.
HomeStart – 6% Down Payment Assistance Loan for borrowers at or below 50% of Area Media Income. The HomeStart loan comes with 0% interest and a 30-year deferred down payment loan equal to 6% of the Maryland Mortgage total loan amount (first lien).
Maryland SmartBuy 3.0 – This loan is for borrowers with at least $1,000 in student loan debt. The SmartBuy 3.0 program can help you get a mortgage and pay off that debt in one transaction. The amount you can apply to student loan debt payoff is up to 15 percent of the home’s purchase price with a cap of $50,000. This is a zero-interest forgivable loan after five years.
In addition to the requirements by program, all Maryland Mortgage Programs generally require that borrowers purchase a primary residence and not own another residence. The home is required to be within the Maryland purchase price limits, which vary depending on location. Income limits also require that the combined household income of all adults living on the property does not exceed Maryland Limits.
Credit Score minimums are as follows:
Maryland Mortgage Down Payment assistance loans offer credit-worthy borrowers an affordable home financing option. Additional eligibility requirements may exist, and a consultation with one of our Maryland licensed loan officers to discuss your eligibility is required.
MassHousing
MassHousing is a state and regional program that provides affordable mortgage options for the purchase of a 1-4 family home or condominium in Massachusetts.
Key features are:
- Affordable, fixed interest rates
- Flexible underwriting guidelines and income limits
- Loans are serviced by MassHousing
- Down payment assistance
- Options with and without Mortgage Insurance
- Mortgage Payment Protection with MI plus (protection that helps you pay your mortgage if you lose your job!)
- Rehabilitation/Renovation loans available
Contact one of our Massachusetts Loan Officers to get started today!
New Hampshire Housing
New Hampshire Housing promotes, finances and supports affordable housing for Granite State residents. One of the goals of NH Housing is to offer safe, fixed-rate mortgages.
New Hampshire Housing offers homebuyer programs for New Hampshire residents with incomes up to $128,900.
Loan options include:
- Home Flex which provides up to 3% of the base loan amount to help with down payments
- Home Preferred which is a conventional mortgage with 3% down and reduced MI rates
- Rehabilitation Mortgage Programs if you are buying a fixer-upper, you can add up to a $35,000 to your purchase mortgage with as little as 3.5% down to assist with repairs and upgrades.
- Home-Start Homebuyer Tax Credit makes homeownership more affordable for first-time homebuyers. The homebuyer tax credit can decrease the federal income taxes you owe, thereby boosting your take-home pay, which may help you qualify for a mortgage. It is an annual credit for the life of the mortgage.
- Home Preferred No MI provides you with conventional mortgage financing terms and not MI (Mortgage Insurance) option. No MI with as little as 3% down, (97% LTV).
Contact one of our New Hampshire Loan Officers to get started today!
Pennsylvania Housing
The Pennsylvania Housing Finance Agency (PHFA) provides affordable mortgage financing to buy a home through a variety of programs. The program that is best for you will depend on your specific circumstances, such as your credit history and amount of cash savings, as well as your individual preferences.
What they offer:
- Home purchase and refinance options
- Closing costs and down payment assistance
- Conventional, FHA, VA and RD loan types
- Competitive interest rates
- Energy efficiency and home repair loans
- Free homebuyer education
- PHFA services the loan for its full lifetime
As with many state housing programs, there are a lot of options available and you may be more qualified than you think. If you want to buy a home but don’t think you have enough money for down payment, think again because we have people buying homes using the PHFA loan programs with very little money out of pocket. To learn more about these programs reach out to a qualified loan officer today!
RIHousing
RI Housing strives to offer programs that support meeting the needs of current and future homebuyers in the State of Rhode Island. RI Housing’s First-time Homebuyers programs enable borrowers to realize their dream of homeownership by providing generous loans and grants to credit-worthy borrowers.
As an approved RI Housing lender, Mortgage Equity Partners provides access to these homebuyer programs. All our RI loan officers are available to help you find the right program and see if you qualify.
To qualify, you must:
- Be a first-time homebuyer purchasing a 1-4 family home or condominium in Rhode Island
- Have a minimum credit score of 660
- Meet RIHousing loan* and income limits**
- Complete a homebuyer education course (available online)
- Obtain a RIHousing-funded first mortgage through a Participating Lender or the RIHousing Loan Center
- Occupy the home as your primary residence
*As of 5/1/2024, the Maximum Acquisition Price Limit/Cost is $838,592
**As of 5/1/2024 The Maximum Annual Household Income: $134,320 (1 or 2 person household) and $154,468 (3+ person household).
First-Time Homebuyer Programs
15K DPA
RIHousing’s 15kDPA program provides $15,000 in assistance for down payment and/or closing costs in the form of a zero-percent (0%) interest rate loan to first-time homebuyers in Rhode Island.
FirstGenHomeRI
FirstGenHomeRI opens the doors for first-generation homebuyers with $25,000 in down payment and/or closing cost assistance.
Extra Assistance Loan (EAL)
RIHousing’s Extra Assistance Loan program provides down payment assistance to eligible first-time homebuyers in Rhode Island to finance down payment and/or closing costs up to 6% of the purchase price, or $20,000, whichever is lower.
RI Statewide DPA and Grant Program
The RI Statewide DPA program is closed as of March 5, 2024, but may receive additional funds annually. Check with your loan officer to learn more about this program and your eligibility. When active, this program provides a $17,500 DPA grant.
For more on these programs visit RIHousing or contact one of our RI loan officers.
Contact one of our Rhode Island Loan Officers to get started today!
South Carolina Housing
SC Housing’s Homebuyer Program can put you in a loan you can live with – one that’s affordable and consistent over the long term. This program assists low to moderate families and individuals by offering a competitive, fixed-rate mortgage loan. Down payment assistance and closing cost assistance may be available for qualified borrowers.
These loans offer:
- Low, fixed interest rates
- Down Payment Assistance – For many people considering a first home purchase, saving enough money for the down payment and other costs can be a challenge. At SC Housing, we understand this, and we are here to help you meet this challenge with a variety of down payment assistance programs.
Contact one of our South Carolina Loan Officers to get started today!
