Real Estate

Neighborhood Housing Services has a Home with Down Payment Assistance for Sale.

 

Would you like to buy a house that is in great condition and has been updated?

Have you thought you might not be able to purchase a renovated home on your salary? Are you one of those hard-working people who has not been able to save a lot of money to buy a home and yet are tired of renting?  Do you live on a limited budget? Did you know there is a program that will allow you to purchase a home with little money out of your pocket? Usually 1% to 1.75% of the purchase price.  Neighborhood Housing Services and Community Action have grant programs for those who qualify.  These grant programs are federally funded assistance programs with the intent of helping low to moderate income families achieve the American Dream of home ownership.. 

The grant program will pay your down payment and closing costs not to exceed a certain dollar amount. Depending on the program, this could be up to $12,750, $14,299 or $40,000.  The grant programs change every year and so the actual dollar amount will most likely change.

Neighborhood Housing Services has some great homes that they rehab as well as some new construction. The homes they rehab are brought up to current code and evaluated so they are a good home for the new buyer. Older homes are tested for lead based paint and remediated as needed.  While not every home gets the same upgrades, you can often expect to see new plumbing, electrical, heat and air, roofs, kitchen cabinets, and counter tops as well as appliances.  These homes are then offered to the general public at a fair value.  The buyer does need to be an owner occupant to purchase these properties with the intention to live there a minimum of 5 years.  They will also need to qualify for the program based on income guidelines per family size.  As of this writing (2017) a single person will need to make $36,050 or less a year, while a family of 4 can make up to $51,500.  If your income is close, please apply.  Sometimes certain types of income are not counted, only the home buyer specialist can tell you for sure.

Currently Neighborhood Housing Service has a fabulous home at 2808 NW 14th Oklahoma City, OK 73107.  The neighborhood has been getting a facelift with several investors updating homes in the area.  This 2 bed, 1 bath home built in 1912 has almost everything new–new drywall, insulation, kitchen cabinets, counter tops, vinyl flooring, carpet, refinished wood flooring, new deck and wood fence, new wiring, plumbing, heat pump HVAC, roof, reworked windows, electric box, hot water tank, and carport.  The improvements in this house would cost the average homeowner a lot of money.  They are done for you and the house is ready to move in.  This house is currently priced at $105,000, with you the buyer receiving up to $14,299 towards down payment assistance and closing costs.

If you are interested in viewing this house or have questions regarding down payment assistance, please feel free to give me, Sandi Walker, a call at 405-213-2992 or visit my website http://www.equityhomesteam.com.

Real Estate

Can I get Down payment money?

There is a huge misnomer in the world that if you have never purchased a home before that you will get some free money to help buy a home. And if you have already purchased a home, you are out of luck. This is simply not true. Let me explain.
Down payment assistance programs were created to help low to moderate income families purchase a home of their own. If you make too much money, you will not qualify. There are two types of down payment programs referred to as —bond loans and grants. Today most of these programs do not require you to be a first time homebuyer. In addition, if you have not owned a home within the past 3 years, you are considered a first time home buyer.
Bond loans generally carry a higher interest rate than the prevailing rate. While both bond and grant programs both have income guidelines, bond loans allow you to make significantly more money and still qualify. Bond loans will usually pay the buyer’s down payment only. The buyer will need to negotiate closing costs with the seller or pay them themselves. These programs require that live in the property for a set period of time generally 5 years and you are not usually allowed to refinance or rent the property during this time. If you have your own money saved for down payment, you are generally better off using it than getting a bond loan due to the higher interest rate.
Grant programs allow you to get a loan using the prevailing interest rate. They do not increase the amount of the interest premium. These programs usually require borrowers to make less than the median income or perhaps 80% of the median income for the county. Currently, the grant program in Cleveland county allows a family of 4 to make up to $51,600 a year. This particular grant program will however pay the buyer’s closing costs, down payment and up front MI. This is a fabulous help for a home buyer. These programs generally require the buyer to have a percentage of their own money invested (1% of purchase price as of this writing in Cleveland county), a home buyer education class, and a property compliance inspection. Grant programs also require you to live in the property much like a bond loan.
If you are thinking about buying a home and would like more information on grant programs in your area or you are thinking about selling and you like to know how I can help you market your home using down payment assistance, please call me Sandi Walker 405-213-2992.

Real Estate

Are you looking for Down payment assistance?

In Oklahoma City, we have an organization, Neighborhood Housing Services, LLC.,  that provides grant money to first time home buyers who meet certain income guidelines. This program allows up to $14,999 in grant money depending on purchase price of the property.  This money can be used for down payment, up front mortgage insurance, closing costs, and principle reduction.  The buyer does need to have some personal investment in the home—FHA loans will require a 1.75% investment while all other loan products will require a 1% investment. Meaning the buyer will need to have some of their own money. Example on a $100,000 house—$1750 with a FHA loan.

The grant allow the buyer to obtain a 90% to value loan. FHA guidelines state that if the original loan amount is 90% or less of the sales price then the mortgage insurance stays on the loan for 11 years rather than the life of the loan. Also if the buyer is able to do a 15 year note rather than a 30 year note, the monthly MI drops greatly but that is the subject for another blog. 

The amount of down payment assistance will be calculated as follows:

  • 10% of purchase price+UPMIP+closing costs——less seller or lender credits, additional DPA such as OCHFA, tax proration’s, etc. up to $14,999.  Attached is a calculation scenario.

The minimum required investment the DPA recipient is 1% of the purchase price but will increase to 1.75% when the lender requires 3.5% down payment on FHA loans.

  • DPA recipients must meet the First Time Homebuyer definition–could not have owned a house in the past 3 years.
  • Front & Back end ratios cannot exceed 30%/41% using NHSOKC’s income calculation
  • Maximum purchase price cannot exceed 95% median purchase price limits- $126,000 existing-$195,000 new construction
  • Loan Discount fee, Lender’s inspection fee and Underwriter fees are no longer allowed
  • Household income limits of 80% median income will remain the same
  • Five year (affordability) period will remain the same. Meaning you need to live in the home for 5 years or will need to pay back a proration amount of the DPA.

The current down payment contract expires July 31, 2014.  There may be additional changes to the program.

If you have questions regarding down payment assistance or real estate in general, please contact me, Sandi Walker.  I would love to discuss helping you buy your first home.  www.sandiwalker.net  or 405-213-2992