The National Homebuyers Fund (NHF) serves to provide down payment assistance to both returning and first time homebuyers. It’s one of the few down payment assistance programs available that does not have a first time homebuyer or income limitation stipulation! I recently closed a purchase for a client that used this program to get into a home. He had high income, but no money for a down payment, so the down payment assistance coupled with a seller credit for closing costs got him into a beautiful townhome that fit all of his needs, and it all came with very little money out of pocket from his own funds.
Here are some of the program’s highlights and details:
- No income limitations
- No first time homebuyer requirement
- FHA 1st mortgage provided at 96.5% of the purchase price
- 5% Down Payment Assistance 2nd mortgage to provide 100% financing and no money down* OR 5.0% Down Payment + Closing Cost Assistance 2nd mortgage
- Non-Occupant Co-Borrower is allowable to help qualify
*There are 2 options for the 2nd mortgage:
- A deferred 10 Year forgivable 2nd: There is no payment due for the first ten years of the loan; after ten years, it simply falls off as an obligation as long as (a) you have made timely payments in all ten years, (b) you are still occupying the home as your primary residence, and (c) there have been no “repayable” events such as refinancing.
- A 10 Year Fully-Amortizing repayable Fixed 2nd : With this option, you have an improved interest rate on your mortgage, and the 2nd mortgage is due at a rate of 2% above the 1st mortgage rate. This loan is due and payable in 10 years, OR if you refinance.
Contact me with any questions, or if you would like me to run numbers for your particular scenario. Opportunities to get into the housing market do exist, and this is an excellent choice for a person with higher income but little or no assets.
