AFR announces homebuyer program to grant 2% of purchase price, 6% of closing costs

AFR announces homebuyer program to grant 2% of purchase price, 6% of closing costs: American Financial Resources announced its new down payment assistance program that will provide grants for homebuyers, and caters especially to teachers, military members and first responders. The program will grant up to 2% of the purchase price and up to 6% of closing costs.












DPA Advantage Program Guidelines

Borrower Eligibility - Must meet one of the following three categories outlined below

  • First-time Home Buyer
    • Purchasing the subject property
    • Will reside in the subject property as their principal residence
    • Has no ownership interest in any residential property, for a period three years prior to the date of application.
      • The exception will be for an individual who is a homemaker or single parent with no ownership interest in a principal residence, other than a jointly owned property with a former spouse, during the three-year period prior to the date of the application
  • Borrower(s) Income
    • The borrower, or borrowers if multiple applicants on the loan application, income must be equal or less than 140% of the state or county median income regardless of family size
      • To determine the median income use the following web tool to determine median income https://homeready-eligibility.fanniemae.com/homeready/
      • Borrower(s) income must be less than the median income * 1.4
      • If overtime income is not used to qualify the borrower, then the overtime income doesn’t not count towards the 140%
      • The income that the underwriter will use to qualify the borrower is what will be compared to the 140%
  • Current or Retired Employment or Volunteer/Non-Paid Member
    • Any borrower on the loan application is a current, retired, or volunteer, which includes:
      • First responder (includes police officer, firefighter, public safety officer, paramedic, EMT)
      • Educator (includes Sunday school teacher, tutor, day care provider)
      • Medical personnel (includes nurse, doctor, phlebotomists, health ambassador, Red Cross worker)
      • Civil Servant in Federal, State, or Local Municipality
      • Military Personnel
  • Borrower(s) must complete an 8 hour, first-time Homebuyer education course from a HUD approved Housing Counseling Agency. Click Here for a list of HUD approved counseling agencies
    • Online counseling is acceptable. Click Here for an example of one national counseling agency
    • Only one borrower must take the first-time Homebuyer education course
    • If the borrower has already completed another approved course that will be acceptable provided the course expiration is after the closing on the loan

Down Payment Requirements from Homebuyer

  • When factoring in the DPA Advantage grant the borrower is responsible for a down payment equal to 1.50% of the purchase price (FHA 3.50% down payment, minus DPA Advantage Programs 2.00 Grant)
  • The borrowers 1.50% down payment responsibility can come from flexible sources such as a family member gift or a loan against a 401k retirement account

Eligible Properties

  • Existing homes
  • New Construction
  • Includes: single-family one-unit residence, townhomes, detached, condominiums, and modular homes

Interest Rate

  • The interest rate on the DPA Advantage Program is significantly higher than a standard FHA Loan

Loan Type:

  • FHA 203 (b)
  • FHA 203 (k) Standard
  • FHA 203 (k) Limited
  • FHA Repair Escrow

Maximum Purchase Price

  • The maximum purchase price is the lower of FHA maximum County loan limit or the conforming loan limit, which is currently $484,350
  • Click Here to determine the maximum base loan amount for a FHA Loan, based on the County in which the property is located

Maximum Debt-To-Income (DTI)

  • Maximum DTI limit is 48.99

Minimum Credit Score

  • FHA: 580

Multiple Property Ownership

  • Not permitted

Occupancy Type

  • Primary residence only
  • Non-occupant co-signers allowed, so long as the primary borrower meets one of the three requirements for the DPA Advantage Program

Repayment Requirements and Affordability Period

  • None. Completely forgivable grant

Joel Lobb, Mortgage Loan Officer kentuckyloan@gmail.com

Wed, Oct 17, 2018, 11:51 AM
to me, Joel

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
kentuckyloan@gmail.com
http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

--

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

Text/call:      502-905-3708
fax:            502-327-9119
email:          kentuckyloan@gmail.com


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