Unlocking Homeownership: Understanding Down Payment Assistance and FHA's 101.5% CLTV Program
At Monument Home Loans, we understand that the path to homeownership can be challenging, especially when it comes to gathering the funds for a down payment. That's why we're thrilled to announce our partnership with an investor that offers a unique opportunity for homebuyers: a 101.5% Combined Loan-to-Value (CLTV) program utilizing an FHA loan and a down payment assistance second mortgage.
What is Down Payment Assistance?
Down payment assistance (DPA) programs are designed to help homebuyers cover the initial costs of purchasing a home. These programs can come in the form of grants, loans, or tax credits and are often offered by government agencies, non-profits, or private lenders. The goal is to reduce the financial burden of the down payment, making it easier for buyers to secure a mortgage.
Monument Home Loans' 101.5% CLTV Program:
Through our partnership, we offer a program that allows for a CLTV ratio of up to 101.5%. This means eligible buyers can finance not only the purchase price of the home but also some of the closing costs, significantly reducing the upfront cash needed.
How Does the 101.5% CLTV Program Work?
Eligibility: To qualify, borrowers must meet FHA's standard credit and income requirements. The program is typically available for first-time homebuyers, those with mediocre to average credit, and even those who may have had a ding here and there on their credit history.
Loan Structure: The primary mortgage covers up to 96.5% of the home's purchase price, while the remaining 5% can be covered by a second mortgage through our down payment assistance program. And guess what? That extra 1.5% is designed to help cover your closing costs! If there's any balance due, it could be negotiated with the seller to cover it, or you might need to contribute a small amount out of pocket.
Benefits: This program is particularly beneficial for buyers who have limited savings but can afford monthly mortgage payments. It allows them to enter the housing market sooner without waiting to save a large down payment.
Why Consider Monument Home Loans' 101.5% CLTV Program?
This partnership is a game-changer for potential homeowners, especially in competitive markets like Tampa Bay and across Florida. By reducing the initial financial barrier, it opens the door to homeownership for many who might otherwise be unable to buy a home.
Final Thoughts:
Navigating the world of home loans and down payment assistance can be complex, but with the right guidance, it becomes much more manageable. At Monument Home Loans, we're committed to helping you find the best solutions for your home buying journey. Whether you're a first-time buyer or looking to upgrade, our team is here to support you every step of the way.
If you're interested in learning more about our 101.5% CLTV program and how it can benefit you, don't hesitate to reach out to us. Let's make your dream of homeownership a reality!
