American Dream Downpayment Initiative

NC Mortgage ExpertThe American Dream Down payment Initiative was a program initially offered through the Bush Administration to help with the Housing collapse.  The program offered First time home buyers up to $8,000 for use toward the down payment and closing costs. This program actually came as a loan that had no payments and zero interest – you simply owed the $8,000 when you moved onto the next house.

This program did not last very long, and today it is replaced in NC by the 3% Grant Program. This program updated in May of 2013, and offers qualified home buyers a forgivable grant of up to 3% which can be used for closing costs or the down payment on a home. There’s no requirement that you be able to “match the funds” with your own cash, in fact, any additional monies needed can come from a Gift or from a combination of the Seller and the Lender.

The NC Affordable Housing Program for the Grant or the MCC has the following requirements:

  • Can be used with the FHA Loan Program and used to cover up to 3% of the downpayment, or it can go towards the closing costs.
  • Can be used with the VA Loan or USDA Home Loan program and used to cover closing costs.
  • Minimum credit score of 640
  • Requires that the homebuyer show a history of renting their primary residence for the past 3 years.  So even if you are not a FIRST time homebuyer – the program is still open to you.
  • Maximum income for borrowers applying is $85,000

We think that Mortgage rates are going to continue to go up this summer – and with them – Home Prices will probably go up too.  Why is that?

Johanna Brown, an agent with Re/Max United in Cary,  said it would be pretty common for people sitting on the fence to get motivated by mortgage interest rates creeping up this summer.

“When we see an uptick in interest rates, people start to get that feeling that they might have missed the bottom of the market — which they have already. But sometimes fear is an important factor in buying property,” she said. “The interest rates are still very, very good, and people who want to buy a home, if they can, should be out there trying to buy.”

Because of this, the NC Affordable Housing Grant Program and the MCC Tax Credit will continue to be very important.  Remember – Eligibility Maps for USDA Home Loans will change – and that is likely to cause many delays in underwriting – so act quickly to buy a home!  Want the Best Mortgage Rates?  Call Steve and Eleanor Thorne 919 649 5058.  We have our finger on the market, and we will help find you the very best program to save your family money!

 

I try and answer all questions :)