top of page
"Home is where the story begins" on a handmade clay jar
bedside tabl with analog alarm clock and succulent plant
Tea on a tray on an unmade bed

FIRST TIME HOME BUYER?

3% Down, 1% Down, and Down Payment Assistance Available 

MAKE THE MOVE TO A HOME OF YOUR OWN

Loan programs tailored to first time home buyers so that you can

start building equity in your home, instead of your landlord's.

FHA LOAN WITH 3.5% DOWN

  • ​FHA loans offer a minimum down payment of 3.5% (dependent on credit score)

  • FHA allows for higher debt to income (DTI) ratios than conventional loans

  • FHA qualification is easier with lower credit scores

  • You may use gift funds from a direct family member for down payment and closing costs

CONVENTIONAL LOAN WITH 3% DOWN

  • ​No upfront mortgage insurance in closing costs (for FHA this costs 1.75% of the loan)

  • Monthly mortgage insurance is generally lower than FHA with a higher credit score

  • Mortgage insurance drops off loan payment upon reaching 20% equity (no refinance required - FHA requires refinancing)

1% DOWN PAYMENT PROGRAM

  • ​1% minimum borrower cash investment required, based on the appraised value or sales price, whichever is lower

  • 2% contribution is in the form of a grant, no repayment required if requirements met

  • 30 year fixed rate loan term

  • Single family residences, condos, and town home property types allowed

  • Income limits apply

  • Must have clean credit

  • Higher interest rates

DOWN PAYMENT ASSISTANCE (DPA) PROGRAMS**

**Availability of DPA programs varies based on current lender offerings**

CONVENTIONAL

  • Provides a borrower with either 4% or 5% assistance (a percentage of the 1st mortgage loan amount) depending on income. The assistance on this program is secured by a community/soft second that has no payments or accrued interest and is forgiven after three years (as long as the property is not sold, refinanced, or in default)

​

FHA

  • Provides a borrower with either a 3% or 4% non-repayable grant (a percentage of the 1st mortgage loan amount including the financed MIP) determined by the interest rate the borrower has chosen and utilizes a standard FHA loan of 96.5% loan to value (LTV)

  • Both  programs require lower than traditional FHA debt-to-income (DTI) ratio

  • Closing costs and interest rates are higher

bottom of page