First Time Homebuyer grant effect debt/income ration?!

Asked by Malita215, Philadelphia, PA Fri Apr 5, 2013

I'm in the process of looking at homes. I narrowed down my location to Upper Darby or other counties in Delaware County. I was recently informed that if/when the grant is acceptable by my lender, the lender would then have to factor in the grant into my debt/income ration to see if it works for me. I know that for the first few years, the grant is more of a "loan". But why should that affect my debt/income ratio?

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Philip J. Cunningham Sr’s answer
Philip J. Cu…, Agent, Feasterville, PA
Fri Apr 5, 2013
How about I just cut thought the bull. The grant could be forgiven after a number of years or would have to be paid back if the house changes ownership. The amount to be paid back reduce over the time stated in the Grant paperwork so no one can answer this question completely unless they see 6the paperwork on the Grant,or at lease know the name of the Grant. the short of it is it is a loan and may have to be paid back in some amount and all credit must be included in the debt to income and this is for you protection so that you do not over extend yourself. Please call me in my office so I may go over this with you. 215-725-5700 X49

Philip J. Cunningham Sr.
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia, PA 19152 215-725-5700 X49
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, ,
Fri Apr 5, 2013
Hello Malita,

It is a loan with a repayment schedule just like a car or a credit card

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stephen webb…, Agent, Kirkland, WA
Fri Apr 5, 2013
Whoops misread your question. If the lender is experienced with the agency they will know what to factor into your ratios so you can determine your price range and search the listings.
The key to working with the agencies is the lender and loan officers experience with the agency. Gather up some information and maybe interview another loan officer and lender.
You will find an article, Consultation Interviewing Loan Officers, at that will serve you well. Also if you read the articles in the numbered order you will learn a step by step process that will aways lead you to the best buys in your market. You will also become a savvy home buyer. As you know Trulia is also a good source of information and agents from your area are offering their services on Trulia. A good source. Be sure to read article #9 about the MCC Tax Credit. The best tax credit ever but you must file before you close on your new place.
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stephen webb…, Agent, Kirkland, WA
Fri Apr 5, 2013
Hi Malita
The Grant may include an interest rate or to be paid down each month. The lender should know what to factor in when you applied for the grant ?? Maybe they are waiting for the agency to approve your total monthly obligation. Some agencies must approve your monthly obligation, ratio, before they will approve the grant. No fun waiting. Best of Luck, Stephen
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