House to Home Ownership Down Payment Assistance Loan Program
Funding Partners for Housing Solutions in partnership with local jurisdictions and FirstBank have a program available to provide loans to moderate income families who need help to purchase their first home. Called H2O, this programs guidelines are as follows:
First-time homebuyers, defined as borrowers who have not owned a real property within the past three years.
Income Threshold: 80% of the HUD Area Median Income, adjusted for actual household size, for the county in which the property is located. Income is established by currently demonstrated wages, excluding items such as overtime, commission and bonus income that have not been earned consistently for the most previous 2-year period.
Loan Amount: 5% of the purchase price.
Compatible Mortgages: H2O may be used in conjunction with conforming conventional and certain portfolio programs that offer fixed or intermediate variable rate terms designed for entry-level buyers. (i.e. FLEX, My Community, 5/1, 7/1, etc.). FHA, VA, Subprime and other non-conforming products are not permitted.
Loan to Value: Maximum combined loan to value is 105% of purchase price.
Debt Ratio: Maximum back-end ratio of 41%.
Minimum Investment: Borrower must have a minimum investment of $1,000, excluding Seller contributions.
Assets: May not have personal assets in excess of the purchase price.
Repayment: Principal and equity share (as applicable) are due and payable upon subsequent home sale, refinance of the primary mortgage, the property no longer constitutes the primary residence, or maturity of the H2O Note, whichever occurs first.
Use of Funds: Down payment, closing costs and pre-paid items related to the primary loan.
Term: Maximum term is 15 years.
Loan Fees: Currently, a $150 Application Fee is charged at the time of loan closing. Please refer our website for updates.
Collateral: Subordinate lien on subject property.
Periodic Payment: Partial repayment is not permitted. If loan principal is repaid within 24 months, no finance charges are applied. There are no prepayment penalties.
Homebuyer Training: Required on all loans, as evidenced by an approved provider. Visit our website for a complete listing.
For further information you can call 970-494-2021 or check the website (see related links).
