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There are many institutions available to assist homebuyers in the home loan process, one of which is The Partners in Charity Program or PIC. Provided that the homebuyers meet two conditions PIC will gladly give the borrowers a gift equal to 3%, 4%, or 5% of the final sale price of the home. These funds are intended to be used to cover the down payment and closing costs.
The criteria that need to be met are as follows:
(1) The homebuyers need to qualify for one of the many eligible home loan programs
(2) The homebuyers must complete a Home Ownership Counseling Course
When the criteria are met and the gift has been given to the homebuyers they need not worry about repayment and this gift can be used for most types of homes in most geographical locations. Your home loan lender will be able to assist you in choosing a home loan program and appropriate Counseling Course.
For more information contact:
Partners in Charity, Toll-Free: 800-705-8350.
Loans and gifts from family, friends, and other organizations can help borrowers put together a down payment sufficient for their home loan needs. The percentage of the loan or gift that is available for use as a down payment can vary depending on the type of home loan you qualify for. It is important to discuss any loans or gifts you plan to use as a down payment with your mortgage lender.
Many companies also offer programs to their employees to make the home buying experience easier. 401K plans are often used for this purpose and employees are permitted to withdraw from their 401K plans without penalty to provide a down payment on a home loan. Making use of your 401K program can be useful and beneficial but there can be drawbacks that must be examined.
Many factors are considered when applying for a low down payment home loan. These factors include a good credit background, sufficient appraisal value, and adequate income to pay the monthly mortgage payment. Your ability to pay the mortgage closing costs will also be taken into account. Closing costs typically run between 2% to 3% of the price of the property. Your mortgage lender will also discuss with you certain formulas that are used to determine your long term ability to pay for the home loan.
Housing authorities are agencies in states around the nation that handle housing issues in their designated areas. Many housing authorities strive to provide stable and affordable housing for low and moderate income persons and create living environments that help residents learn to live independently.
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