One Thing You NEED To Know Before Pursuing Down Payment Assistance
Down Payment Assistance programs (or DPA’s) are similar to a lot of great ideas, they sound great in theory but as you start to dive into the details they may start to become less and less attractive or feasible… that is, if you have a Mortgage Planner who is looking out for you.
Many times when we have people reach out to us in search of Down Payment Assistance Programs, we are able to determine what is most important to clients, and often, even in low down payment scenarios, we have found that there are other programs that better suit clients needs. For example we did a side by side comparison for FHA to The GSFA 5% grant program with 3% Down (Follow the link here for GSFA Income Limits), and found that the benefits of the slightly lower overall contribution, is negated by the savings of the FHA program in only two years! Now, if you have goals with your home that are longer than two years, this becomes a very compelling conversation. However, not all lenders are created equal, and to be honest if you qualify for a DPA program, it’s easier to just give someone what they ask for than doing a full analysis of what is actually truly best for them. If you feel like you could this type of Mortgage Planning Valuable, or have questions on the advantages / disadvantages of Down Payment Assistance Programs, email me at Scott@GreenMenasGrow.com