Need Money For a New Home? Here’s How You Can Get Up to $16,500 Towards Your Down Payment & Sellers Assist
Okay so you’re in the market for a new home but are a little cash strapped. For many in this position putting 20, 10, or even 5% down is not a possibility. Between student loans, credit cards, and other expenses it can be tough to save up this kind of cash. More and more mortgage companies are recognizing this issue. It’s not so much the payments folks can’t afford since mortgages tend to be cheaper than rent, it’s the down payments. Luckily new programs have just been rolled out to get folks over this hump.
For years programs for first time home buyers have assisted folks to purchase a new home. However, there are periods of time when many of these programs run out of funding or no longer offer assistance. Well for those currently hunting for a house or thinking of starting their search you will be happy to know that there are several programs geared towards helping with both down payments and closing costs.
FINANTA (FINANcing and Technical Assistance) is administering the Project Reinvest Homeownership program in Philadelphia, PA. Project Reinvest: Homeownership is a Down Payment Assistance program. The program provides $10,500 in down payment assistance for eligible homebuyers who are purchasing a home within (target market).
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Project Reinvest: Homeownership down payment assistance funds may be used for any eligible purpose including closing costs assistance, down payment assistance or borrower minimum out- of-pocket investment if allowed by the first mortgage loan program or other layers of financing.
The Project Reinvest: Homeownership down payment assistance funds will be disbursed at closing. These funds will be in the form of a mortgage secured by the property being purchased.Project Reinvest: Homeownership is a 0% interest deferred grant due on sale.
*Specific programs may include down payment requirements from the borrower’s own funds in combination with the
Project Reinvest: Homeownership down payment assistance program. This is dependent on the type of first mortgage loan
and rules set by the first mortgage lender or investor.
In order to be eligible for Project Reinvest: Homeownership down payment assistance, the homebuyer(s) must meet the following requirements:
Borrower(s)’s income, adjusted for household size, should not exceed 100% of the Area
Complete an eight (8) hour Homebuyer Education Course in the last 12 months
Purchase a home within the Philadelphia market and be under contract
Agree to maintain the home as a primary owner occupant residence
Obtain a first mortgage loan from an approved Project Reinvest: Homeownership lender
In addition to Project Reinvest, other programs can be tacked onto a deal that can give buyers even more assistance. For instance PHFA offers up to $6,00 for first time home buyers as well. Together a buyer has the ability to receive up to $16,500 towards the purchase of a new home. So you see it’s not there isn’t help out there, it’s just knowing how and where to look.