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?
- You approach an FHA approved lender and ask about using a DPA program.
- Locate your desired house and ask the seller to agree on the transaction using FHA mortgage and a down payment assistance program (DPA).
- 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.
- The seller is asked to contribute to closing costs, as well.
- In the end, the seller still gets at least 97% of the original house price and you get a nice new home.
Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
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Common misspellings: mortage and morgage