Are you looking to purchase a home but are having trouble saving up for the down payment or the closing costs; let me tell you about a great option. I’m Matt Keway with Icon Mortgage and our down payment assistance program will provide up to 6% of the purchase price of your new home towards your down payment and/or your closing costs; best part is it is FULLY forgivable.
HOW IT WORKS-SIMPLY
You can call me, Matt Keway, at 810-223-2122 for your free consultation to get approved for a home loan through either traditional FHA or Rural Development financing. After approval we can discuss the Down Payment option to see if it fits you, here is how it works.
The Down Payment Assistance program gives the borrower from 2% up to 6% of the purchase price towards your down payment and/or your closing costs ( $100,000 loan gives you from $2,000 to $6,000). This assistance is in the form of a second mortgage that is forgiven if the first 60 payments on the first mortgage are made in a timely manner; timely is considered zero 90 day late payments. If at year 5 your first mortgage is current then the second will be forgiven regardless of prior late payments.
At the end of each year 20% of the balance will be forgiven with full and total principal amount forgivin at the close of year five.
Year 1: 20% of second forgiven.
Year 2: 20% of second forgiven.
Year 3: 20% of second forgiven.
Year 4: 20% of second forgiven.
Year 5: 20% and final of second forgiven.
All properties in the United States are eligible except Delaware, New York and Wyoming and properties in US territories are also not eligible.
TYPES OF LOANS
Currently only FHA, VA, and Rural Development USDA loans are eligible, Conventional are not eligible.
ELIGIBLE AND NON-ELIGABLE PROPERTIES
Eligible: 1-Unit single family homes and condominiums are eligible for the Down Payment Assistance.
Non-Eligible: 2+ Units, Co-ops, Manufactured Homes, Log Homes, Bamboo Homes, Metal Homes, Container Homes are not eligible for the Down Payment Assistance Program.
Owner –occupied only.
If the property is later moved to an investment property, any previously forgiven balance will be recouped, and no further amounts will be forgiven.
WHAT CAN I USE THE FUNDS FOR?
The funds can be used to pay 100% of the borrowers cash to close, including Down Payment, Closing Costs, and pre-paid items like taxes and interest.
FEES- There is a onetime $500 Admin fee that is rolled into the closing costs and yes this can be paid with the Down Payment Assistance money.
The borrower DOES NOT have to be a FIRST TIME HOMEBUYER. Eligibility is determined primarily by credit score and credit history.
- Borrower must have a 660 FICO score or higher.
- Borrower mush have NOT had a Bankruptcy or Foreclosure within seven years.
- All borrowers must take HUD approved Homeownership Counseling (which is free).
- There is NO income limits.
- FICO scores between 660-679, Debt to Income cap is 50%
- FICO scores greater than 680, the Debt to Income cap is 55%
- Debt repayments and IRS repayment plans must be fully paid in order to be eligible for this program. Current repayment programs are not eligible.
If you have any questions about Icon Mortgage’s Down Payment Assistance program please call Matt Keway at 810-223-2122, NMLS 555036.