FAQ – Program Method For First Time Home Buyer And Down Payment Assistance Programs

When we talk about the Method a program uses, what we are really saying is “here is how the program functions to give you benefit. Here is the scoop.

Junior Lien

A loan given to you to help you pay for your Down Payment or Closing Costs. Generally

  • You make payments on it like any other loan
  • For FTHB DAP programs you normally receive a low interest rate.
  • At some point you will need to pay it back

Call me for more information and make sure to watch the How To Use The True Mortgage Calculator video in the Video Tutorial Section (it shows the effect of this awesome program and in fact this video went all the way to page one on YouTube). The link is below

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Silent Second – Truly Amazing

A lot of people misunderstand this program. It is a loan that is given to you but which you need NOT make any payments on. Here is how it works

  • You get a loan to help with Down Payment and.or Closing Costs.
  • No payments are required
  • If it was a small loan, it basically helped you get your foot in the door because you were short on cash
  • If it was a large loan, then it significantly reduced the amount of your mortgage payment so you could afford to buy.
  • While there was no payment required on this loan, it still is a loan and usually has a low 3% simple interest.
  • When you sell, refinance or move out of the house you pay it back.

Joe and Mindy are having a hard time buying a home.  Not only do they not have a down payment or closing costs, but they are finding it hard to qualify for enough to buy anything.  It turns out that they qualify for a 70,000 DAP Silent Second.  This DAP covers all of their Down Payment, Closing Costs and also makes the payment affordable so that they can buy.  10 years later, they are outgrowing the home.  They sell the home, paying off the current home and the loans on it (including the silent second).  They use the proceeds of the home to buy a new bigger home.

Call me for more information and make sure to watch the How To Use The True Mortgage Calculator video in the Video Tutorial Section (it shows the effect of this awesome program and in fact this video went all the way to page one on YouTube). The link is below

 

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Grant

The tax credit program provides the buyer with a tax credit which can increase his monthly take home pay (afford more house payment). This is a great program that most people qualify for. Usually They give you the money towards your Down Payment and Closing Costs. You do not have to pay it back.Call me for more information and make sure to watch the How To Use The True Mortgage Calculator video in the Video Tutorial Section (it shows the effect of this awesome program and in fact this video went all the way to page one on YouTube). The link is below

 

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Blended

This is a situation where they provide you a benefit (like in situation 1 and 2 above as well as the tax credit below) and say if you live in the house for “x” years you do not have to pay the money back. If you sell or move out prior to “x” years, then they want some or all of the money back.

Call me for more information and make sure to watch the How To Use The True Mortgage Calculator video in the Video Tutorial Section (it shows the effect of this awesome program and in fact this video went all the way to page one on YouTube). The link is below

 

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Lower Payment Through Tax Credit – Awesome

This is one of my favorite programs. almost all the buyers qualify for it but just don’t know how to get it. This program reduces the buyers net effective payment by providing them with a tax credit that allows them to raise their take home pay in their paycheck. More money in their paycheck equals more money to spend on the mortgage! This program is usually a blended program. If you own the house for 9 full years, then you owe nothing back. Move out early and you MIGHT have to pay some of the money back. Truthfully I have never had a client have to pay anything back. Call me for more information and make sure to watch the How To Use The True Mortgage Calculator video in the Video Tutorial Section (it shows the effect of this awesome program and in fact this video went all the way to page one on YouTube). The link is below

 

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

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Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

 

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