New 2% Down FHA Grant Program

2% down FHA grant program is now available.  This is a brand new FHA loan program.  it is available on 20, 25, and 30 year fixed program.  This program only qualifies on a single family residence, or a single or double wide manufactured homes.  At this time condo’s and townhomes do not qualify.

How To Qualify:

Borrowers need to meet one of the three main criteria.

First criteria is for the borrower to be a first time home buyer or they haven’t owned a home in the last three years.  Secondly, anyone who is a first responder can qualify as long as their middle fico score is 580 and the loan amount is within the FHA loan limit.  Lastly, if you do not meet any condition listed in item 1 & 2, then you need to make less than 140% of the average median income for your county code.  There is an attached power point presentation that explains this program in more detail.  See the link below.


What Is The Down Payment Amount?

Borrowers will need to come up with down payment in the amount of 1.5% of the purchase price.  The remaining 2% will be in a form of a grant with no strings attached.  What’s the catch to this program?  There is a higher interest rate attached to this loan product.  However, the regular 3.5%.  There is no underwriting fee associated with this loan product.  There is a $10 flood fee and a $80 tax service fee.  This program rebear in mind your down payment amount is only 1.5% compared to quires borrowers to take a home buyer counseling class approved by HUD.  A complete list of approved agencies will be given to you during the loan process.

How Long Does It Take To Close?

Plan on a 35 day close.  This program takes a little longer for approval because there is an approval process with the grant money.

How Can I Get Approved?

Give us a call at 602-358-8717 to get prequalified.  We will need your W-2’s for the last two years, 30 days worth of paystubs, and bank statements for the last 2 months.  We will also need to pull your credit report in order to run this through the DO system for approval.  There is a charge for this.  Loan approval is contigenent upon an Approved/Eligible findings from DO.  Therefore, it’s a good idea to clean your credit before getting preapproved.

Call today for down payment assistance!  602-358-8717

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