Due to the recent crisis of confidence by mortgage investors the zero down payment loan programs disappeared faster than a keg of beer at a frat party! Apart from VA and USDA Rural Development loans there are very few true 100% loan programs available today. However there have always been down payment assistance grant programs for low and low to moderate income borrowers who are otherwise eligible for a mortgage loan but cannot save for the down payment.
During the height of the last real estate boom cycle many realtors, loan officers, and lender avoided these loans due to the extra processing time required. However with fewer home buyers in the market and an excess of real estate inventory these programs are making a comeback in a very big way! Little Known Down payment assistance programs are still available in North Carolina for residents who are moderate and low to moderate income families.
For example; if you are a typical Raleigh family who lives in Wake County and is a first time home buyer with two children and a household income that is less than $62,500 you could qualify for assistance Down Payment Grant from the State of North Carolina of up to $8,000 to be used towards the purchase of a new home priced up to $220,000 or an existing home up to $210,000!
According to Truila, a leading real estate search engine, the Median House sales price in Raleigh, NC went down 3.63% to $183,100 from prior quarter and when you couple that with 1,768 price reductions in Raleigh, NC this week and combined with your down payment of $500 that is a down payment towards your closing costs, and down payment of $8,500 a First Time Home Buyer in Raleigh North Carolina would have a heck of a lot of options! If you are curious what your payment would be – click here to use these free calculators.
Another little know down payment grant is available from the Federal Home Loan Savings Bank of Atlanta that will actually give you a five to one (5:1) matching program towards your down payment, points and closing costs! This program is for First Time Home Buyers in North Carolina who can otherwise qualify for a mortgage but cannot save for a down payment and whose household income is 80% or less of the HUD’s Median Income for their household or $62,160. See the Chart below for examples of how your verified down payment can be multiplied by five.
Home Buyer EducatioN Counseling Srvices
In order to participate most Down Payment Assistance programs require the home buyer to participate and complete a HUD Approved Home Buyer Education class . In Raleigh DHIC who began as as Downtown Housing Improvement Corporation, focused on revitalization efforts in southeast Raleigh. DHIC, Inc. is the Triangle area’s oldest and largest non-profit housing organization. Click here for their 2011 Home Buyer Education Schedule.
If you are a First Time Home Buyer and would like to know how you can use one of these little known low down payment loan options to buy your first home in Raleigh and the surrounding counties in North Carolina, send me an email with your name, and best time and phone number to call you at and we can begin the exciting process of making your dreams of owning your first home a reality!