Question:

The FHA down payment assistance (DPA) programs– do they really help buy a house?

Answer:

Yes, they do. Here's how FHA down payment assistance (DPA) programs help consumers who really can afford the monthly payment but have very little cash on the side for the down payment.

Getting Help with FHA DPAs

FHA mortgage loans allow that the seller finances up to 6% of the loan amount as closing costs and down payment assistance. How does it work for you?

  1. You approach an FHA approved lender and ask about using a DPA program.
  2. Locate your desired house and ask the seller to agree on the transaction using FHA mortgage and a down payment assistance program (DPA).
  3. The house has to be appraised up the original price for usually as little as 3% - the down payment amount required by most FHA programs. As of recently, minimum FHA down payment required can be 1.5% only.
  4. The seller is asked to contribute to closing costs, as well.
  5. In the end, the seller still gets at least 97% of the original house price and you get a nice new home.
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