Looking to buy a home but your down payment needs a boost? Watch this episode, this new down payment assistance program could give you up to 5% of the purchase price to buy your new home. Tune it to see if you could qualify and the requirements. Get a full loan application in and a loan consultation to see if this will work for you.
This down payment assistance program is being offered by Movement Mortgage nationwide. You can apply for 3.5% or 5% from the purchase to apply towards your down payment or closing costs. The first loan is a 30-year FHA loan and the second loan is a repayable loan amortized over 10 years. Both loans will have a fixed interest rate based on borrower’s qualifications.
How can you qualify?
Movement Boost follows FHA guidelines with a few tweaks specific to the program. The minimum credit score is 620, you need two years of employment if you have a W2 – gaps of employment of 6 or more months would need to be explained and prior work history may be required – if you are self-employed, you will need to provide two years of personal and business tax returns (or schedule C) and a YTD profit and loss statement.
Another important requirement is to have a 12-month rental history. We verify this with your landlord. Or you can provide 12 months of cancelled checks and a copy of your lease agreement.
If your credit is above 680, you get the opportunity to apply for a higher loan amount (debt to income ratio – DTI – is 55% – what is DTI? video).
What if I already own a home?
This program allows you to qualify for a new primary residence even if you are already a homeowner without needing to sell your home. The key is to be able to qualify for two mortgages (departing residence and new home).
Is there an income limit?
Yes. Income limit for the program is limited to 160% of the county limit where the property is being purchased. The income limit is not based on Household Income, but qualifying income only. This means that you can have a non-occupant cosigner to qualify for the home without counting their income in the limits.
What type of properties can I buy?
Single family residences (one unit dwelling homes), manufactured housing (double wide converted to real property, 2-unit properties or duplex, townhomes and condos (approved by HUD).
Do I need to take a Homebuyer Education Class?
Yes, you can take an online or in-person class provided by a HUD approved agency. Once you apply, we can send you the link and resources to sign up.
What else do I need to know?
The first step is to setup a loan consultation to see which option works best for you, go over your budget and what you really need in a home. Once we have the full picture, we can guide you to the process. Our goal is to get you into your home with a monthly payment you can afford.
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