Home Buying in Jackson>Question Details

Sarah Berlin, Home Buyer in Jackson County, MI

i'm a first time home buyer and i was wondering if there is any program out there to help with them down payment or closing cost.

Asked by Sarah Berlin, Jackson County, MI Mon Dec 20, 2010

i do have some money to pay down on it.

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BEST ANSWER
HI Sarah,

Recently I had answered your question regarding a home in Parma, MI that was in a "pending status." There is a program that is available if it is a Fannie Mae property.

HomePath Financing
HomePath® Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:

The benefits include:

•Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
•You may qualify even if your credit is less than perfect
•Available to both owner occupiers and investors
•Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
•No mortgage insurance*
•No appraisal fees
•Also eligible for HomePath Renovation Mortgage (see details below)
•HomePath Mortgage financing is available from a variety of lenders - both local and national.

HomePath® Renovation Mortgage Financing

This special financing is available on Fannie Mae homes with the following logo:

Available only on homes you make your primary residence and offers these benefits:

•Financing to fund both your purchase and light renovation
•Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
•Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
•No mortgage insurance*
•HomePath Renovation Mortgage financing is available from several lenders.

Rural Developement is a program through the Government that offers no down payment if the home is in "Rural Area." I have lenders that offer programs relating to Fannie Mae & Rural Developement.
USDA Loans - They're NOT for Farmers!
A USDA home loan has nothing to do with agriculture.

It's simply a government insured loan program directed to families in qualifying rural areas of the U.S. -- which generally include:

•Communities outside of city limits

•Communities with less than 20,000 people

It might surprise you just how many areas of the United States do qualify for these no money down, no mortgage insurance home loans.

The goal of the USDA loan program is to help our nation's smaller, rural communities thrive by making land and property more affordable.

Why Buy a Home with a USDA Rural Development Loan?
In a word: Affordability.

For starters, a USDA Loan is the only loan program offered to the general that allows you to finance 100% of your home's value. That means no down payment of any kind.

In addition, there is no monthly mortgage insurance payment with a USDA guarantee loan, which means more money can go to paying off the mortgage each month. USDA loans are made even more affordable through very competitive fixed interest rates, ensuring your payments will not increase every month.

•NO down payment - Finance 100% of your home

•NO monthly mortgage insurance

•NO maximum loan amount

•NO assets needed to qualify

•Flexible credit guidelines

•Competitive, fixed interest rates so payments do not increase

•USDA Loans are for new and existing properties

USDA Loan Eligibility - Do I Qualify?
There are only a few requirements you have to meet in order to be eligible for a USDA home loan. The first is that the home must be located in a designated USDA rural area. You can check the USDA eligibility of your county using the link below.

If the home is in an eligible area, you must not exceed the current yearly USDA income limit set for your county. Finally, assuming you meet both the location and income requirements, the final requirement is an evaluation of your credit history. The USDA Rural Development loan program does not have a strict credit score guideline. Rather, it evaluates your credit history in an effort to ascertain your willingness to meet repayment obligations. I have contacts in the Jackson area who process these types of loans.

MSHDA is a State of Michigan program that will help you with your down payment, qualifying required.
Jackson Affordable Housing is a local agency that will help you with your down payment for buying a home in Jackson City Limits, qualifying required.

Please let me know if I can you further.

Merry Christmas!
Nathan LaZebnik
Edward Surovell Realtors
(517)795-0296
http://www.homesinjacksonmichigan.com
1 vote Thank Flag Link Mon Dec 20, 2010
As a real estate professional in Michigan I am frequently asked about down payment assistance in purchasing a home. A good place to start looking for help is your local MSHDA office.
The Michigan State Housing Development Authority, provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing.

http://www.michigan.gov/mshda

for real estate questions, check the web site below, or contact:

Chip Andis
Cell (248) 931-0084

Chip@Realfi.com

REALFi
REAL ESTATE AND FINANCE IN ONE
34 S. Telegraph Rd
Waterford, MI 48328
Office (248) 886-0000
1 vote Thank Flag Link Mon Dec 20, 2010
There were many programs. They vary from state to state. Some went away or had very limited amounts to give when the recession hit. Best thing to do is to google home downpayment assistance programs in your city or county and see what is out there. I have to be honest with you most of us as realtors only know of a few of these programs. You have to do your own research to find out how many there are in your area and what you can qualify for. Not everyone qualifies for each program. Some programs have to be paid back if you sell the home within 5 years. Most of them that I have worked with require the person applying to attend a class for 8 hours. Again, they vary from state to state, county to county and city to city. Best of luck. I hope you find what you are looking for online. I also hope it works out and you get your home.
0 votes Thank Flag Link Tue Dec 28, 2010
There are programs for qualified individuals. Your best bet is to speak with a loan agent who knows how to direct you to the right avenues for your particular needs. Some direct lenders offer only their "products", so it is a good idea to work through either a mortgage broker or an agency that serves your industry or job type, e.g., if you're a teacher, there are programs for that. So, depending on your profession, there are programs for specific industries and particular professions that may be available for you.
0 votes Thank Flag Link Mon Dec 27, 2010
Yes, Almost any program will allow the seller to contribute to closing costs. Your closing costs may vary depending on price of home and what state you are purchasing in. I know of ONLY 3 programs that will allow you to purchase a home with (almost) no money out of pocket. One is a VA loan, another is a USDA loan (those are usually in more rural areas-http://www.usda-loans.info/). The last program has to do with bank owned homes. Some banks offer (only on their foreclosure), various programs with little to no money down. They are often a treasure hunt. I would recommend getting prequalified for a FHA loan (3.5% down) and ask the seller to pay for the rest of your closing costs. 3.5% is still a good deal to get into a home.

Good luck to you. Also, check with an agent in the city you are interested in, Many larger cities have set aside some money for down payment assistance.

Brooke C. Martin
Designated Broker, Exit Realty Dynamics
Direct: 480-235-0024
eFax: 480-406-6769
BrookeAzAgent@gmail.com
http://www.AZHomeSalesByBrooke.com
0 votes Thank Flag Link Tue Dec 21, 2010
You can consider a HUD foreclosed home. You can get into a HUD house for as little as $100. This includes closing costs which you can roll into your mortgage. Of course you have to do this the right way, but I've outlined the details in my blog. It is simply too much to list here.

I'm not licensed where you are, but there are often state grants and programs as mentioned by others here. In Kentucky we have KHC funding which works with FHA financing to provide down payment assistance. There are Metro Grants for those inside Jefferson County where the city government provides 10% of the purchase price up to $10,000 for down payment assistance to owner occupants. Ask your friends and family who the best Realtor in your area is and then check out their track record for yourself.

Good Luck & Happy House Hunting,

Mark Atteberry
0 votes Thank Flag Link Tue Dec 21, 2010
your best best bet is FHA. They only requuire 3.5% down and it can come from a relative!
0 votes Thank Flag Link Tue Dec 21, 2010
Sarah,
I see you are in Michigan so our bond program in Arizona won't help you. We have a program called Arizona Housing Finance Authority that includes down payment and closing cost assistance. There might be a similar program in Michigan as I know there was something very close in Colorado for helping first time home buyers.
Selecting the right lender and real estate agent to help you with the process is crucial. Connecting with the right resources will make your home purchase as smooth as possible and really fun with the values out here right now.
Make a plan and work it!
Warm aloha,

Carra Riley, CRB, CRS, GRI
Web Reference: http://CarraRiley.com
0 votes Thank Flag Link Tue Dec 21, 2010
YES. IN SOME INSTANCES YOU CAN ASK FOR MONEY BACK FOR CLOSING COSTS FROM THE SELLER, AND IN FHA YOU ARE ALLOWED TO ASK FOR UP TO 3%
0 votes Thank Flag Link Tue Dec 21, 2010
Sarah,

Contact several mortgage lenders in your area and discuss with them mthe propgrams that are available in your area. In the Boston Area there is an organization called Mass Housing which sponsors programs for first time buyers, there is probably something similiar where you live. If you have a good credit score you will have many opportunities to get into the housing market with little or no money of your own.

Best of luck and have fun during the process.
0 votes Thank Flag Link Tue Dec 21, 2010
In some areas of the country there are special incentive programs for public service jobs such as teachers or firepersons, police officers etc. There are also some programs that give incentives for revitalization areas. Of course, you can ask the seller to contribute to closing costs and prepaids. Probably the most universal program is FHA which requires only 3.5% down for qualified persons. The very best thing to do is to inverview REALTORS to find someone who is familiar with your area and who has experience with many lenders and can give you advice with regard to whom you can trust to give you your best options. The REALTOR's fee will most likely be paid by
the Seller. Make sure you discuss and get in writing that you will be protected by a Buyer's agent. Have a great adventure, Smiles, M,A. Hat Lady Real Estate Columbia Mo
0 votes Thank Flag Link Tue Dec 21, 2010
Hi Sarah,

FHA will be a good option for you. Specfically, you may want to work with a Mortgage broker who know about the FHA WISH (WORKFORCE INITIATIVE SUBSIDY FOR HOMEOWNERSHIP PROGRAM) which offers a grant for firts time owner occupant homebuyers. This program offers a grant, so you only have to come up with a 1% down.
ADVANTAGES:
REDUCES COST TO GET INTO FHA BY 2/3’RDS IF CONSUMER LIVES IN PROPERTY FOR 5 YEARS THERE IS NO PAYBACK OF GRANT and NO INTEREST W/ NO MONTLY PAYMENT ON THE GRANT PORTION>

Good luck finding The Right Home at The Right Price
0 votes Thank Flag Link Tue Dec 21, 2010
Hi Sarah,

I also am not in the MI area, but I know of some nationwide programs right off hand. VA, is the first and foremost. To be eligible for VA you maust have served a certain number of years in the military or reserve. If you have not served in the Military, there is another nationwide program. This is the USDA Rural Home Loan program. The main criteria of this program is the location on the home you wish to purchase. To be eligible it must fall outside of any major cities. In most cases this includes the suburbs of most major cities. You can find more information here: http://www.rurdev.usda.gov/Home.html
USDA has other requirements including income limits, credit, etc. But in either case (VA and Rural) you can finance the entire price of the home as well as some or all closing costs over the purchase price (103%-106%). First thing you should do is contact a local lender or your bank and inquire about some programs. There may also be some specialized local programs to help also. I personally bought my first home 14 years ago using a program like this. These programs are vital to our communities. Good luck and congratulations on your decision to become a home owner!
0 votes Thank Flag Link Tue Dec 21, 2010
Sarah,

Nathan and Chip have some great advice Go to your bank and ask if they have special incentives to MSHDA is still your best option. Lenders can be so great in getting you a plan for the future. They know about many options that will be able to help you.

Good luck buying a home for the first time is so exciting. I would contact Nathan or Chip they seem to have great answers and are willing to help.

Happy Holidays,

Vera
0 votes Thank Flag Link Tue Dec 21, 2010
Dear Sarah, There may be down payment assistance with your local Town, County or State. I service Long Island, New York and some of the townships are offering down payment assistance to those who are purchasing in certain target areas that are looking to revitalize. There may be some restrictions. There may be a limit as to what your income is and what your credit score is, etc. In some cases, the local government is giving a grant and sometimes will match your downpayment. I would check out your local community, town, county and state for info. Google "Down payment assistance in Jackson, MI" and see what comes up. Now is the time to buy with great rates and a lot of homes to choose. Your research may pay off big time. Good Luck!
0 votes Thank Flag Link Tue Dec 21, 2010
Need confer with mortgage broker answer all your questions.

Down payments may vary

However 1st home buyers program no longer offered with tax credit and etc.

If you are turned down best consider to save money towards closing costs and down payment UNLESS you have a relative who can lend money to you .

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Dec 21, 2010
Hi Sarah,
I would contact a local bank and ask about a MSHDA loan, or a RD loan. Both of those would be good options for you. Thanks, -Ben
0 votes Thank Flag Link Mon Dec 20, 2010
Sarah:

Go to your local community bank and talk to them about the Community Reivestment Act. It varies from state to state, but there are monies available in certain areas. Best
0 votes Thank Flag Link Mon Dec 20, 2010
AHH... I just noticed.. Jackson, MI!

Sorry, I was reading Jackson, NJ!
0 votes Thank Flag Link Mon Dec 20, 2010
Hi Sarah,

There are programs available for first time homebuyers in New Jersey. Email me and we can discuss.
I know of a good mortgage rep that knows about these prgrams in depth and can help to see if you qualify.
There are guidelines and income limitations to take into consideration.


John Sacktig
Broker/Manager
Orange Key Realty
JSacktig@orangekeyrealty.com

Direct: 732-213-1409
0 votes Thank Flag Link Mon Dec 20, 2010
Sarah;
Also contact your bank or lending institution. They will be able to tell you everything you need based on your current situation
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Dec 20, 2010
FHA only requires 3% down

Go find a Broker in your area they'll know all about types of loans to help you get in your first home.
0 votes Thank Flag Link Mon Dec 20, 2010
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