A homebuyer’s down payment
depends upon the type of loan chosen. An FHA loan typically requires
a down payment of 3% of the sales price of the home. A conventional
loan typically requires 5% of the sales price of the home.
There are a variety of no money down programs
available to first time homebuyers. Your lender can advise you
as to which program is right for you.
Genesis
Foundation
The Genesis Foundation Down Payment Assistance Grant provides
gift funds to eligible participants to help them meet the down
payment requirements to purchase homes. Without such assistance,
some individuals would not have the necessary down payment funds
to become homeowners.
The Genesis Foundation provides gift funds,
with no repayment requirement, from an existing pool of funds
to qualified applicants purchasing homes participating in a Genesis
Service Agreement. A participating home is one owned by a seller
who agrees to make a contribution to Genesis to assist in increasing
the number of prospective buyers through Genesis' Down Payment
Assistance. The Genesis Foundation is a non-profit 501(c)3 charitable
organization. With a grant from Genesis, recipients are able to
purchase and finance homes to be owner occupied with as little
as no down payment required from the buyers existing funds. The
funds gifted to eligible buyer’s is not derived from the
sale transaction, but are gifted from a pool of funds collected
from previous contributions.
AmeriDream
To participate in AmeriDream's Down payment Gift Program, a homebuyer
must contact a lender and qualify for a loan that allows gift
funds, and the homebuyer must purchase a home from a builder or
seller who has enrolled his or her home in the program.
The homebuyer should submit, through his or
her lender, a gift program application to AmeriDream at least
24 hours prior to settlement/closing. The funds will be wired
to the settlement/closing agent on the day of settlement/closing.
Builders and sellers have the option of enrolling
their homes in AmeriDream's Gold, Silver or Bronze Program. The
Gold Program gifts homebuyers five percent of the home's purchase
price; Silver, three percent; Bronze, two percent.
Upon settlement, builders/sellers pay a service
fee to AmeriDream based on the program in which they participate.
***Information on Genesis and Ameridream
was taken directly from their websites.
Financing Information
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