News


Affordable Housing For Everyone

Alabama

http://www.ahfa.com/homebuyers

Programs

Affordable Income Subsidy Grant

http://www.ahfa.com/homebuyers/programs-available/affordable-income-subsidy-grant

Mortgage Credit Certificate

http://www.ahfa.com/homebuyers/programs-available/mccs


Alaska

https://www.ahfc.us/buy

Programs

Tax-Exempt First-Time Homebuyer Program

https://www.ahfc.us/buy/loan-programs/first-time-loans

Taxable First -Time Homebuyer Program

https://www.ahfc.us/buy/loan-programs/first-time-loans


Arizona

https://housing.az.gov/general-public/home-plus

Home Plus Program

https://housing.az.gov/general-public/home-plus


Arkansas

Programs:

ADAF Move Up

https://homeloans.arkansas.gov/move-up/

ADFA MCC - Mortgage Credit Certificate

https://homeloans.arkansas.gov/mcc/

ADFA Down Payment Assistance (DPA)

https://homeloans.arkansas.gov/dpa/

Arkansas Dream Down Payment Initiative (ADDI)

https://homeloans.arkansas.gov/addi/


California

https://www.calhfa.ca.gov/homebuyer/programs/index.htm

Programs

First Mortgage Programs

CalHFA Conventional Loan Program

https://www.calhfa.ca.gov/homebuyer/programs/conventional.htm

CalPLUS Conventional Loan Program

https://www.calhfa.ca.gov/homebuyer/programs/calplus-conventional.htm

Government Insured Loans

CalHFA FHA Loan Program

https://www.calhfa.ca.gov/homebuyer/programs/fha.htm

CalPLUS FHA Loan Program

https://www.calhfa.ca.gov/homebuyer/programs/calplus.htm

Cal-EEM + Grant Program

https://www.calhfa.ca.gov/homebuyer/programs/eem.htm

CalHFA VA Loan Program

https://www.calhfa.ca.gov/homebuyer/programs/va.htm

Down Payment Assistance Programs

MyHome Assistance Program

https://www.calhfa.ca.gov/homebuyer/programs/myhome.htm

School Teacher and Employee Assistance Program (School Program)

https://www.calhfa.ca.gov/homebuyer/programs/school.htm

Mortgage Credit Certificate Tax Credit Program

Mortgage Credit Certificate Tax Credit Program (MCC)

https://www.calhfa.ca.gov/homebuyer/programs/mcc.htm


Colorado

https://www.chfainfo.com/homeownership

Down Payment Assistance

https://www.chfainfo.com/homeownership/down-payment-assistance


Connecticut

https://www.chfa.org/homebuyers/

HFA Advantage and HFA Preferred

https://www.chfa.org/homebuyers-homeowners/homebuyers/hfa-preferred-mortgage/

Homebuyer Mortgage Program

https://www.chfa.org/homebuyers-homeowners/homebuyers/homebuyer-mortgage-program/

Down Payment Assistance Program (DAP) Loans

https://www.chfa.org/homebuyers-homeowners/homebuyers/downpayment-assistance-program-dap-loan/


Delaware

http://www.destatehousing.com/HomeOwnership/HomeOwnership.php

Home Ownership Programs

Home Ownership Loan Program

http://www.destatehousing.com/HomeOwnership/hb_sfmrb.php

Delaware First-Time Homebuyer Tax Credit

http://www.destatehousing.com/HomeOwnership/hb_fthb.php

Neighborhood Stabilization Program (NSP)

http://www.destatehousing.com/HomeOwnership/dv_nsp.php

Downpayment and Closing Cost Assistance

Preferred Plus

http://www.destatehousing.com/HomeOwnership/hb_sfmrb.php#pp

Home Repair Programs

The Statewide Emergency Repair Program (SERP)

http://www.destatehousing.com/HomeOwnership/homeownermedia/serp_card.pdf

Community Development Block Grants (CDBG)

http://www.destatehousing.com/Landlords/dv_cdbg.php

Foreclosure Prevention Programs

Delaware Emergency Mortgage Assistance Program (DEMAP)

http://www.destatehousing.com/HomeOwnership/hb_demap.php

Manufactured Housing Assistance Program (MHAP)

http://www.destatehousing.com/HomeOwnership/hb_mhap.php

Wilmington Senior Tax Assistance Program

http://www.destatehousing.com/HomeOwnership/hb_wstap.php


Florida

http://www.floridahousing.org/

Mortgage Credit Certificate Program

https://www.floridahousing.org/programs/homebuyer-loan-program-wizards/mortgage-credit-certificate-program-wizard

Florida Homebuyer Loan Program

https://apps.floridahousing.org/StandAlone/FTHBWizard


Georgia

https://www.dca.ga.gov/safe-affordable-housing/homeownership

State Home Mortgage

https://www.dca.ga.gov/safe-affordable-housing/homeownership/state-home-mortgage

Georgia Dream

https://www.dca.ga.gov/safe-affordable-housing/homeownership/georgia-dream

HomeSafe Georgia

https://www.dca.ga.gov/safe-affordable-housing/homeownership/homesafe-georgia

Housing Counselor Resources and Training

https://www.dca.ga.gov/safe-affordable-housing/homeownership/housing-counselor-resources-training


Hawaii

http://dbedt.hawaii.gov/hhfdc/

HHFDC Affordable Resale Program Project

https://www.locationshawaii.com/hhfdc/

Mortgage Credit Certificate

http://dbedt.hawaii.gov/hhfdc/mortgage-credit-certificate/

Buyback and SAE Programs

http://dbedt.hawaii.gov/hhfdc/request-for-information-on-hhfdc-sae-property/

Hula Mae Single Family Loans (Not currently active)

http://dbedt.hawaii.gov/hhfdc/copy_of_homebuyers/


Idaho

https://www.idahohousing.com/homebuyers/

Homebuyer Tax Credit

https://www.idahohousing.com/lenders-realtors/homebuyer-tax-credit/

Down Payment / Closing Cost Assistance

https://www.idahohousing.com/lenders-realtors/down-payment-closing-cost-assistance/


Illinois

Illinois Housing Development Authority

https://www.ihda.org/my-home/

IHDAccess Forgivable

https://www.ihda.org/my-home/getting-an-ihda-loan/#collapseOne

IHDAccess Deferred

https://www.ihda.org/my-home/getting-an-ihda-loan/#collapseTwo

IHDAccess Repayable

https://www.ihda.org/my-home/getting-an-ihda-loan/#collapseThree

1stHomeIllinois

https://www.ihda.org/my-home/getting-an-ihda-loan/#collapseFour


Indiana

Indiana Housings and Community Development Authority

https://www.in.gov/ihcda/homeownership/

Honor Our Vets (HOV)

https://www.in.gov/ihcda/homeownership/files/2018%20Honor%20Our%20Vets%20Program%20Guide.pdf

Helping To Own (H2O)

https://www.in.gov/ihcda/homeownership/files/2017%20HELPING%20TO%20OWN%20PROGRAM%20GUIDE_SH.pdf

Mortgage Credit Certificate (MCC)

https://www.in.gov/ihcda/homeownership/files/2017%20MCC%20PROGRAM%20GUIDE_SH.pdf

Next Home (NH)

https://www.in.gov/ihcda/homeownership/files/2017%20NEXT%20HOME%20PROGRAM%20GUIDE_SH.pdf

Next Home With Mortgage Credit Certificate (NH/MCC)

Affordable Home (AH)

https://www.in.gov/ihcda/homeownership/files/2017%20AFFORDABLE%20HOME%20PROGRAM%20GUIDE_SH.pdf

My Home (MH)

https://www.in.gov/ihcda/homeownership/files/2017%20MY%20HOME%20PROGRAM%20GUIDE_SH.pdf

My home with Mortgage Credit Certificate (MH/MCC)


Iowa

http://iowahousehunt.com/begin/

Mortgage Programs

http://iowafinanceauthority.gov/Public/Pages/PC77LN25

Down Payment Assistance Programs

http://iowafinanceauthority.gov/Public/Pages/PC78LN25

Mortgage Credit Certificate Program

http://iowafinanceauthority.gov/Public/Pages/PC93LN25

Military Home owership Assistance Program

http://iowafinanceauthority.gov/Public/Pages/PC79LN25

Iowa Title Guaranty

http://www.iowafinanceauthority.gov/TitleGuaranty/Residential


Kansas

Kansas Housing Resources Corporation

http://www.kshousingcorp.org/homebuyer-assistance.aspx


Kentucky

http://www.kyhousing.org/Home-Buyers/Pages/default.aspx

Down Payment Closing Cost Assistance

http://www.kyhousing.org/Home-Buyers/Pages/Down-Payment-Closing-Cost-Assistance.aspx

Hardest Hit Fund (HHF) DAP

http://www.kyhousing.org/make-the-move/Pages/default.aspx

Home Buyer Tax Credit

http://www.kyhousing.org/Home-Buyers/Pages/Home-Buyer-Tax-Credit.aspx


Louisiana

Louisiana Housing Corporation

https://www.lhc.la.gov/homebuyers

MRB Home and Assisted

https://www.lhc.la.gov/mrb-homebuyers#

Market Rate GNMA Program

https://www.lhc.la.gov/gnma-homebuyers

LHC Preferred Conventional Program

https://www.lhc.la.gov/preferred-homebuyers

LHC Choice Conventional Program

https://www.lhc.la.gov/choice-homebuyers#

LCH Advantage Program

https://www.lhc.la.gov/advantage-homebuyers

Delta 100 Program

https://www.lhc.la.gov/delta-homebuyers

Mortgage Credit Certificate Program

https://www.lhc.la.gov/mcc-homebuyers

Soft Second Program

https://www.lhc.la.gov/soft-second-homebuyers

Down Payment Assistance Programs

https://www.lhc.la.gov/down-payment-assistance-homebuyers#


Maine

Maine State Housing Authority

http://www.mainehousing.org/programs-services/homebuyer/home-loan

First Home loan:

http://www.mainehousing.org/programs-services/homebuyer/home-loan#Loan


Maryland

Maryland Mortgage Program

https://mmp.maryland.gov/Pages/default.aspx

Programs:

MMP 1st Time Advantage with 3% Assistance

https://mmp.maryland.gov/Pages/1stTimeAdvantage3.aspx

MMP 1st Time Advantage

https://mmp.maryland.gov/Pages/1stTimeAdvantage.aspx

Maryland Mortgage Loan Assist

https://mmp.maryland.gov/LoanAssist/Pages/default.aspx

Maryland Mortgage Grant Assist

https://mmp.maryland.gov/GrantAssist/Pages/default.aspx

Maryland Mortgage Rate Assist

https://mmp.maryland.gov/RateAssist/Pages/default.aspx

Partner Match

https://mmp.maryland.gov/Pages/Downpayment.aspx

Maryland HomeCredit

https://mmp.maryland.gov/Pages/MDHomeCredit.aspx

Maryland SmartBuy Program

https://mmp.maryland.gov/Pages/SmartBuy/default.aspx


Massachusetts

Massachusetts Housing

https://www.masshousing.com/portal/server.pt/community/home_ownership/223/home_ownership_home

MassHousing Mortgage

https://www.masshousing.com/portal/server.pt/community/home_buyer_loans/226/masshousing_loan

Operation Welcome Home

https://www.masshousing.com/portal/server.pt/community/home_buyer_loans/226/operation_welcome_home

Down Payment Assistance

https://www.masshousing.com/portal/server.pt/community/home_buyer_loans/226/down_payment_assistance


Michigan

Michigan State Housing Development Authority

https://www.michigan.gov/mshda/0,4641,7-141-45866---,00.html#!#homebuyers

Programs:

MI Home Loan Mortgage

https://www.michigan.gov/mshda/0,4641,7-141-45866_45868-370762--,00.html

MI Home Loan Flex

https://www.michigan.gov/mshda/0,4641,7-141-45866_45868-284858--,00.html

Step Forward Down Payment Assistance Loan

https://www.michigan.gov/downpayment/0,8844,7-353-88583---,00.html

Mortgage Credit Certificate (MCC)

https://www.michigan.gov/mshda/0,4595,7-141-45866_45868-216692--,00.html

Individual Development Account

https://www.michigan.gov/mshda/0,4641,7-141-45866_45868-172118--,00.html

Housing Education Program

https://www.michigan.gov/mshda/0,4641,7-141-45866_45868-177801--,00.html


Minnesota

Minnesota Housing

http://www.mnhousing.gov/sites/Satellite?c=Page&cid=1519058662552&pagename=External%2FPage%2FEXTStandardLayout


Mississippi

Mississippi Home Corporation

https://www.mshomecorp.com/how-we-help/helping-homebuyers/


Missouri

Missouri Housing Development Commission

http://www.mhdc.com/homes/index.htm

Programs:

First Place Loan Program

http://www.mhdc.com/homes/firstplaceloans/index.htm

Mortgage Credit Certificate (MCC)

http://www.mhdc.com/homes/mcc/index.htm


Montana

Montana Housing

http://housing.mt.gov/Homebuyers

Programs:

Regular Bond Loan Program

http://housing.mt.gov/HBRegBond

Set Aside Program

http://housing.mt.gov/HBSetaside

Montana Veterans’ Home Loan

http://housing.mt.gov/HBVHLP

Down Payment Assistance

http://housing.mt.gov/HBDPA

80% Combined Program

http://housing.mt.gov/HB80Combined

Habitat for Humanity

http://housing.mt.gov/HBHabitat

Mortgage Credit Certificate

http://housing.mt.gov/HBMCC

Board of Investments

http://housing.mt.gov/HBBOI

Disabled Accessible Affordable Homeownership

http://housing.mt.gov/HBDAAHP


Nebraska

Nebraska Investment Finance Authority

https://www.nifa.org/homebuyer

Programs

https://www.nifa.org/homebuyer/loan-programs

Eligibility

https://www.nifa.org/homebuyer/eligibility

Interest Rates

https://www.nifa.org/homebuyer/interest-rates


Nevada

Nevada Housing Division

https://www.homeispossiblenv.org/

Programs:

Home is Possible

https://www.homeispossiblenv.org/home-possible-nevada-down-payment-assistance-program

Home is Possible for Heroes

https://www.homeispossiblenv.org/program/home-possible-heroes

Mortgage Credit Certificate

https://www.homeispossiblenv.org/home-possible-mortgage-credit-certificate

Home is Possible for Teachers

https://www.homeispossiblenv.org/program/home-possible-teachers


New Hampshire

New Hampshire Housing Finance Authority

https://www.gonewhampshirehousing.com/

Programs

Homebuyer Tax Credit

https://www.gonewhampshirehousing.com/our-programs/homebuyer-tax-credit

Mortgage Programs:

https://www.gonewhampshirehousing.com/our-programs/mortgage-programs


New Jersey

New Jersey Housing and Mortgage Finance Agency

https://www.njhousing.gov/homeownership/

Programs

NJHMFA Down Payment Assistance Program

https://www.njhousing.gov/dca/hmfa/homeownership/buyers/dpa/

First-Time Homebuyer Mortgage Program

https://www.njhousing.gov/dca/hmfa/homeownership/buyers/first/

Police and Firemen's Retirement System Mortgage Program

https://www.njhousing.gov/dca/hmfa/homeownership/buyers/retire/


New Mexico

New Mexico Housing Finance Agency

http://www.housingnm.org/homebuyers/home-buyers

Programs

First Home Program

http://www.housingnm.org/homebuyers/first-home

First Down Program

http://www.housingnm.org/homebuyers/first-down

NextHome Program

http://www.housingnm.org/homebuyers/next-home-program


New York

State of New York Mortgage Agency

http://www.nyshcr.org/SONYMA/

Programs

SONYMA Neighborhood Revitalization Program

http://www.nyshcr.org/Topics/Home/Buyers/SONYMA/SONYMA-NRP.htm

SONYMA Graduate to Homeownership Program

http://www.nyshcr.org/Topics/Home/Buyers/SONYMA/SONYMA-grad2home.htm

Conventional Plus Progran

http://www.nyshcr.org/Topics/Home/Buyers/ConventionalPlusProgram.htm

FHA Plus Program

http://www.nyshcr.org/Topics/Home/Buyers/FHAPlusProgram.htm

Manufactured Home Advantage Program

http://www.nyshcr.org/Topics/Home/Buyers/MHAP.htm

Down Payment Assistance Loan (DPAL)

http://www.nyshcr.org/Topics/Home/Buyers/SONYMA/DownPaymentAssistanceLoan(DPAL).htm


North Carolina

North Carolina Housing Finance Agency

https://www.nchfa.com/home-buyers

Programs

NC Home Advantage Mortgage

https://www.nchfa.com/homeownership-partners/home-builders/mortgage-product-options/nc-home-advantage-mortgage

NC 1st Home Advantage Down Payment

https://www.nchfa.com/home-ownership-partners/home-builders/mortgage-product-options/nc-1st-home-advantage-down-payment

NC Home Advantage Tax Credit

https://www.nchfa.com/homeownership-partners/home-builders/mortgage-product-options/mortgage-credit-certificate


 

North Dakota

North Dakota Housing Finance Agency

https://www.ndhfa.org/Homeownership/Intro.html

 

Programs:

First Home

https://www.ndhfa.org/Homeownership/Firsthome.aspx

 

Home Access Program

https://www.ndhfa.org/Homeownership/Homeaccess.aspx

North Dakota Roots

https://www.ndhfa.org/Homeownership/Roots.aspx

Major Home Improvement Program

https://www.ndhfa.org/Homeownership/Majorhomeimprovement.aspx

 

Targeted Area Loan Program

https://www.ndhfa.org/Homeownership/TargetedAreas.html


 

Ohio

Ohio Housing Finance Agency

https://myohiohome.org/

Programs

First-Time Homebuyer

https://myohiohome.org/firsttimehomebuyer.aspx

 

Your Choice! Down Payment Assistance

https://myohiohome.org/downpaymentassistance.aspx

 

OHFA Advantage

https://myohiohome.org/homebuyeradvantage.aspx

 

Grants for Grads

https://myohiohome.org/grantsforgrads.aspx

 

Ohio Heros

https://myohiohome.org/ohioheroes.aspx

 

Mortgage Tax Credit

https://myohiohome.org/mortgagetaxcredit.aspx

 

Target Area Loan

https://myohiohome.org/Geodata/Default.aspx

 

Next Home

https://myohiohome.org/nexthome.aspx

Renovate Ohio

https://myohiohome.org/renovateohio.aspx

 

 

Oklahoma

Oklahoma Housing Finance Agency

https://www.ok.gov/ohfa/

 

Programs

https://www.ok.gov/ohfa/Homebuyers/index.html


Oregon

https://www.oregon.gov/ohcs/Pages/oregon-bond-loan-program.aspx

 

Pennsylvania

Pennsylvana Housing Finance Agency

https://www.phfa.org/homebuyers/

 

Programs

 

Home Purchase

https://www.phfa.org/programs/homepurchase.aspx

 

Purchase Assistance

https://www.phfa.org/programs/assistance.aspx

 

Refinance Options

https://www.phfa.org/programs/refinance.aspx

 

Home Improvements/Repairs

https://www.phfa.org/programs/repairs.aspx



 

Rhode Island

Rhode Island Housing

https://loans.rihousing.com/

 

Programs

First Down - Down Payment Assistance

https://loans.rihousing.com/First_Down/

 

First Homes

https://loans.rihousing.com/FirstHomes/

 

Beyond First Homes

https://loans.rihousing.com/Beyond_FirstHomes/

 

Lasting Homes

https://loans.rihousing.com/LastingHomes/

 

Septic and Sewer

https://loans.rihousing.com/SepticSewer/

 

 

South Carolina

South Carolina Housing

http://www.schousing.com/Home/HomeBuyers

 

Programs

SC Housing Homebuyer Program

http://www.schousing.com/Home/HomebuyerProgram

 

Mortgage Credit Certificates

http://www.schousing.com/Home/MortgageCreditCertificates

 

Palmetto Home Advantage

http://www.schousing.com/Home/Palmetto-Home-Advantage

 

Hardest Hit Fund Down Payment Assistance

http://www.schousing.com/Home/HHF-Down-Payment-Assistance

 

Income/Home Price Limits

http://www.schousing.com/Home/HomeLimits



 

South Dakota

South Dakota Housing Development Authority

http://www.sdhda.org/home-ownership/first-time-homebuyers.html

 

Tennessee

Tennesse Housing Development Agency 2019

https://thda.org/homebuyers/

 

Programs

Down Payment Assistance

https://thda.org/homebuyers/down-payment-assistance-1

 

Great Choice Home Loans

https://thda.org/homebuyers/great-choice-home-loans

 

Texas

http://www.tdhca.state.tx.us/homeownership/

 

Programs

My First Texas Home

http://www.tdhca.state.tx.us/homeownership/fthb/my-first-texas-home.htm

 

My Choice Texas Home

http://www.tdhca.state.tx.us/homeownership/fthb/my-choice-texas-home.htm

 

Texas Mortgage Credit Certificate Program

http://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htm

 

 

 

Utah

Utah Housing Corporation 2019

https://utahhousingcorp.org/homebuyer

 

Programs

Down Payment Assistance

https://utahhousingcorp.org/homebuyer/programs/downPaymentAssistance

 

Home Loans

https://utahhousingcorp.org/homebuyer/programs/homeLoans

 

Grants for Veterans

https://utahhousingcorp.org/homebuyer/programs/grantsForVeterans



 

Vermont

Vermont Housing Finance Agency

https://www.vhfa.org/homebuyers/buyahome

 

Programs

https://www.vhfa.org/homebuyers/loanprograms



 

Virginia

Virginia Housing Development Authority 2019

https://www.vhda.com/Pages/Home.aspx

 

Programs

Home Loans

Https://www.vhda.com/Homebuyers/VHDAHomeLoans/Pages/VHDAHomeLoans.aspx#.XEi1v1zYq70

 

VHDA Plus Second Mortgage

https://www.vhda.com/Homebuyers/VHDAHomeLoans/Pages/VHDAHomeLoans.aspx#.XEi17FzYq70



 

Washington

Washington State Housing Finance Commission

http://www.wshfc.org/buyers/index.htm

 

Programs:

Home Advantage

http://www.wshfc.org/buyers/HomeAdvantage.htm

 

House Key Opportunity Program

http://www.wshfc.org/buyers/key.htm

 

Energy Spark Home Loan

http://www.wshfc.org/EnergySpark/index.htm

 

Mortgage Credit Certificate

http://www.wshfc.org/buyers/MCCprogram.htm


 

West Virginia

West Virginia Housing Development Fund

https://www.wvhdf.com/

 

Programs

Homeownership Program

https://www.wvhdf.com/home-buyers/homeownership-program

 

Down Payment/Closing Cost Assistance Program

https://www.wvhdf.com/home-buyers/down-paymentclosing-cost-assistance

 

Moving Up Program

https://www.wvhdf.com/home-buyers/movin-up-loan-program

 

On-Site System Program

https://www.wvhdf.com/home-buyers/on-site-systems-loan-program

 

WVHDF Refinance Program

https://www.wvhdf.com/home-buyers/wvhdf-refinance-program-2

 

USDA 502 Direct Loan Program

https://www.wvhdf.com/home-buyers/usda-502-direct-loan-program


 

Wisconsin

Wisconsin Housing and Economic Development Authority 2019

https://www.wheda.com/Home-Buyers/

 

Programs

https://www.wheda.com/Home-Buyers/Available-Programs/


 

Wyoming

 


Loan officers come across people who have never owned a home, and don’t even know how to go about it. The American Bankers Association is offering tips to help consumers prepare for one of the first steps in the home buying process: saving for a down payment. Before transitioning from renter to home owner, potential buyers must typically save between 5 and 20 percent of the home’s value for the down payment – and it may not be as difficult as renters think!

 

 

BUDGET

First, develop a budget and timeline. What kind of home does the renter have their eye on? What is the price estimate? Determine how much the borrower will need for a down payment, and then work backwards to create a budget and calculate how much should be, and can be, saved every month. That will help the borrower gauge when they will be ready to transition from renter to homeowner. Some renters establish a separate savings account for the down payment to lower the temptation to spend it. Make the monthly contributions automatic.

 

 

 

SHOP AROUND

Potential buyers should shop around to reduce major monthly expenses on current expenses such as car insurance, renter’s insurance, health insurance, cable, internet or cell phone plans. Not that only renters should do this, but there may be deals or promotions available that allow anyone to save hundreds of dollars by adjusting contracts. On the flip side, monitor spending. With online banking, keeping an eye on spending is easier than ever, and seeing where most of one’s income is going is very enlightening.

 

 

 

 

FIRST-TIME HOMEBUYERS 

Lastly, loan officers can help potential borrowers look into state and local home-buying programs. Many states, counties and local governments operate programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants.

 

 

 

 

 

There are plenty of benefits to home ownership, and buying one is an event to be celebrated – but laying the groundwork is critical! And originators are in an ideal place to help borrowers on their way

 

 

 

Is a down payment the only thing keeping you from purchasing a home?

 

Does it Make Financial Sense to Buy a House? Yes!

 

Lenders Know That There are More Millennials than Baby Boomers

 

 

 

Subscribe below for more information. 

 

 


The Mortgage Credit Certificate (MCC) Program was established by Congress in 1984 as a way to provide assistance for first-time home buyers with the requisite low to moderate income levels. The program is funded by the federal government and one of the most comprehensive home buyer assistance programs. Many buyers who may qualify, however, know nothing about the program and its benefits. 

 

Home buyers can apply for the MCC when they complete their mortgage loan application. The MCC covers the purchase of any single family or 2-4 unit dwelling that will serve as the borrower’s primary residence. If the buyer plans to use the property as an investment or for vacation purposes, it is not eligible for the MCC. The property value cannot exceed a maximum that differs by location. In addition, the buyer must apply at the time of the initial home purchase and not during a later financing of an existing loan. Under the MCC guidelines, a first-time home buyer is anyone who has not owned a primary residence in the past three years. So, having owned a home at some point in the past does not automatically disqualify a borrower from the MCC Program.

 

Indiana does have a couple of exceptions to the first-time home buyer requirement. Eligible veterans may be exempt from the first-time home buyer limitation. In addition, properties that are located inside what are known as “Targeted Areas” are exempt from the first-time home buyer requirements. There are thirty counties in the state of Indiana that are categorized as special “Targeted Areas.” In addition, there are many qualifying census tracts outside of the counties designated as “Targeted Area.” Borrowers, therefore, should check the location of the property they are buying to see if qualifies for an exemption to the first-time home buyer requirement.

 

 

The MCC Program works by providing a federal tax credit each year of up to $2,000. The actual amount of the tax credit equals a percent of the annual interest paid and accrued on the borrower’s mortgage loan. The federal income tax credit essentially creates a source of extra income for the borrower that could be used on the mortgage. This effective additional income also assists home buyers by improving some of the payment-to-income ratios banks use when evaluating potential borrowers.

 

Finally, the amount of the tax credit cannot exceed the borrower’s annual income tax liability after accounting for all sources of tax credits and deductions. For example, a borrower receiving the maximum $2000 tax credit must have a tax liability at the end of the year that exceeds $2000 after accounting for all other tax credits and deductions. In addition, the MCC Program tax credit reduces the amount of mortgage interest tax deduction that a borrower can claim. The itemized mortgage interest tax credit is reduced by the amount of the MCC tax credit.

 

 

For More information on this program or information to see if you qualify Contact Us Here

 

 

 

Is a down payment the only thing keeping you from purchasing a home?

 

 

For many young or first-time buyers, the thought of coming up with 20% to put down on a home is daunting. When you don't have equity from an existing home's sale to help improve your down payment amount, you are forced to save the entire amount. But before you assume that you have no option but to come up with 20% before entering the home buying market, you should know that there are other options available to you. Here are some of them.

 

Low Down Payment Loan Options

 

The first place to look is with some of the many low down payment loan options available for you. It's actually no longer true that you have to have a 20% down payment to buy a home. For first-time buyers especially, quite a number of programs are available to help you get past this hurdle.

 

 

The first place to look is with government-backed loans. Government-backed loans are guaranteed, at least in part, by a government agency, such as the Federal Housing Administration, USDA, or the VA. By purchasing a home using one of these loans, you put the lender at less risk, and thus the lender is willing to take on a loan with less down payment.

 

The FHA-backed loans allow you to pay as little as 3.5% down. You will have to pay mortgage insurance, but you won't need 20% down. If you or your spouse is a qualified service member or veteran, you can get a home for no down payment at all through the VA home loan program. While you pay a funding fee, that fee can be rolled into your loan and isn't much. The USDA also allows those buying in non-city areas the option to buy with no money down through the USDA home loan program.

 

 

You can also get a conventional loan with less than 20% down if your credit is fairly good. Some lenders will offer loans for as little as 3% down, and a few will allow select borrowers to burrow the full cost of the home. Keep in mind that you will pay mortgage insurance in this case as well.

 

If you choose a loan program that requires mortgage insurance, you aren't necessarily stuck paying that amount for the life of the loan. You can ask for it to be removed or refinance the home when property values change and you no longer own more than 80% of the home's value. Also, certain loans will automatically drop the insurance after a set number of years.

 

 

Friends and Family

 

If you have trusted friends and family who have access to money, you may be able to set up a loan for the down payment amount. However, a loan, even if it's from family, needs to be documented, and your lender will ask for that documentation. It may change your debt-to-income ratio, which may lower your borrowing power. Still, this can be an effective way to get the money you need for a down payment.

 

If your friends and family wish to give you a gift, you will need documentation that the gift was, in fact, a gift, and that the giver had the money to make the donation. However, if you have friends and family willing to do this for you, the gift won't lower your borrowing power. That said, some lenders are hesitant to lend to customers who have no money at all of their own to put down. One of the reasons lenders ask for a down payment is the fact that it shows the borrower is disciplined enough to save money for a major purchase, and that shows financial stability.

 

Local or State Down Payment Assistance Programs

 

Every single state has some sort of a program to help first-time or low-income buyers get the money they need for their down payment. While making a list of these programs isn't possible because they change regularly, it can be an option for some homebuyers. It may be location specific or borrower specific, so you will want to talk to your potential lender or your real estate agent about the possibilities in your area. However, make sure you look into all of these possibilities before assuming you can't afford a down payment.

 

 

Ohio: Ohio Housing Financing Agency 

 

Kentucky: Kentucky Housing Corporation

 

Indiana: Indiana Housing and Community Development Authority 

 

Tennessee: Tennessee Housing Development Authority

 

 

As you can see, there are options for those who don't have the moony upfront for a 20% down payment. If you're ready to enter the home buying market, and don't think you can save quite enough for a down payment, you have options! Talk to your lender or your agent about those options, and start looking for your new home.
 

 

 

 

Sometimes loan officers are asked the simple questions, “Why should I buy a house? Is it a good investment?” Here in the United States the enthusiasm for buying a home remains remarkably strong. Recent surveys found that almost two-thirds of Americans think that buying a home is the best long-term investment a person can make.

 

But is buying a house really a good investment? There are plenty of non-monetary benefits to owning a home, but is buying a home a good financial call? As always, it depends on your individual situation, but generally the data suggest that compared to the stock market, buying a home has produced similar or better returns with less risk—especially over longer horizons.

 

If you compare the increases in the prices of homes and stocks by looking at the S&P 500, stocks seem much more attractive. Since 1975, the S&P 500 has increased more than twentyfold while over the same period, the Zillow Home Value Index, which tracks the value of the median house in the United States, has only increased in price fivefold. Once dividends and rents are included, however, and after accounting for taxes over the period from 1975 to present, the annual return of the S&P 500 is about 10% versus housing’s nearly 12%!

 

As a homeowner you don’t just benefit from the increase in the price of your home, you also could receive rent, or living in it “for free” after the loan is paid off. There are tax benefits in the form of deductions, versus actually paying taxes on stock dividends or bond income.

 

And the difference between 10% and 12% might sound small, but over a long period of time it can compound to quite a big difference. Over 40 years an annual return of 11.6% means that a dollar would grow to almost $80 but at 10.4% that same dollar would grow to just over $52. A difference of only 1.2% each year compounds into a difference of more than 50 percent over 40 years.

           

 

 

 

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