Archive for Mark Middlebrooks

02 Oct 2012
Down Payment Assistance

Home Opportunity Down Payment Assistance

What is the best thing about Home Opportunity down payment assistance?  The interest rate!  The interest rates for Home Opportunity are approximately 1% lower than other 30 year fixed loan programs.  So if rates stay in the 3.5-4% range, this down payment assistance program would offer a rate around 2.5-3%.  This is PHENOMENAL!

Are these rates better than other down payment assistance programs?  Definitely.  Previous programs offered through Washington State were generally 1% HIGHER than “market” rates.  With Home Opportunity being 1% LOWER than “market” rate, this puts them close to 2% lower in interest rate than previous programs!  On a $250,000 purchase, this would save you about $270 a month!

How much down payment assistance can I qualify for?  With Home Opportunity, there are 6 different down payment assistance structures available.  Of those structures, there are down payment assistance options allowing for up to $45,000 of assistance for first time home buyers.

Do I have to pay the money back?  Yes.  As with most down payment assistance programs for first time home buyers, the funds would have to be paid back eventually.  In some cases the money would be paid back with a monthly payment over a ten year period.  In other cases the money would not need to be paid back until you no longer live in the home or you pay off your mortgage completely.

How do I know if I qualify for Home Opportunity?  If you would like to learn more about the program and the criteria you have to meet, please go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops.  Upon completion of our workshop you will receive a certificate issued by Washington State good for two years, that will give you access to state programs if you meet other income limitations, etc.  Don’t miss out on this phenomenal opportunity!!!

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18 Sep 2012
Down Payment Assistance

Home Advantage Down Payment Assistance.

How much Down Payment Assistance can I get with Home Advantage?  This depends on the price of the home and lending guidelines.  Home Advantage provides down payment assistance up to 4% of your loan amount.  So if your loan amount was $200,000, you would potentially be eligible for $8,000 in down payment assistance!

Do I have to pay the Down Payment Assistance back?  The money would have to be paid back eventually, but there is NO monthly payment and ZERO interest!  You would repay the down payment assistance when you either sell the home, rent it out, or pay off your 30 year mortgage.

What loan programs can be used with Home Advantage?  Almost any loan program can be paired with this down payment assistance program, including Conventional, FHA, USDA, and even VA loans.

Is Home Advantage any different than other Down Payment Assistance programs?  Yes.  The rates are much better than other programs that have been offered by Washington State in the past.  Also, for this down payment assistance program you DO NOT have to be a first time home buyer AND it can be paired with the MCC program!  This is unprecedented as in the past most programs have only been available to first time home buyers and could not be paired with the MCC.

Is Home Advantage right for everyone?  Everybody’s personal situation is different.  To find out more about Home Advantage guidelines, as well as other down payment assistance programs offered by the state, go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops.  Don’t make the biggest decision of your life without getting educated first!!!

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19 Jun 2012
Mortgage

How Much Do I Have to Put Down on My First House?

Do I have to put 20% down in order to purchase a home?  Twenty percent down is typically the amount needed in order to avoid mortgage insurance.  However, it’s possible to put down as little as 3%, or even 0% when using down payment assistance programs.

How much do I have to put down to get the best loan?  The loan program that is right for you will not only depend on down payment requirements, but also property type, credit rating, debt-to-income, etc.  The loan program that works best for you, may not be the same as the person buying the house across the street.

But if I want to avoid mortgage insurance, it’s better to wait and save 20% down right?  This depends on how long it would take you to save up 20%.  One of the many other variables you have to consider are interest rates.  If it would only take you 12 months to save 20% it may be worth it to wait.  But if it would take you 5 years, it might be better to buy now and take advantage of all time historically low interest rates.

Choosing your down payment amount is an important decision, and involves many variables.  If you’re considering buying your first home or condo in the Greater Seattle area, go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops.  Don’t proceed without getting educated FIRST!

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22 May 2012
Down Payment Assistance

Up to $45,000 in Down Payment Assistance

Seattle House Key Plus offers up to $45,000 in Down Payment Assistance!  The funds can be used for either your down payment or closing costs or BOTH.  They can even be used to pay down your interest rate or your monthly mortgage insurance premium, which could lower your monthly payment substantially.

Seattle House Key Plus is for First Time Home Buyers.  But even if you’ve owned a home in the past, you may still be eligible if you haven’t owned a property in the last 3 years.

The property must be located inside Seattle city limits.  But it can pertain to any property type: single family, townhouse, or even a condo.

Seattle House Key acts as a SECOND loan.  However, it’s interest rate is only 3% and it’s a DEFERRED payment!

What exactly does that mean?  It means you don’t have to pay the money back until you either sell the property or refinance.  That’s about as close to free money as you can get!

If you would like to find out more about House Key Plus or other state funded down payment assistance programs, go to our Calendar/Reservations page and register for one of our FREE First Time Home Buyer workshops.  Don’t miss out on the chance to get help buying your first home in Seattle.

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19 Mar 2012
Down Payment Assistance

Down Payment Assistance Programs

Down payment assistance programs are generally SECOND LOANS against the home you are purchasing.  These programs are set up to loan an amount of money to the home buyer that will be paid back with interest over a period of time.  The interest and monthly repayment amounts for these programs tend to be fairly low.

This will have an effect on what your total mortgage payment will be.  In most cases the mortgage payment will consist of: your first loan (principal and interest), your second Down payment assistance loan (principal and interest), property taxes, homeowners insurance and your monthly mortgage insurance premium.

Down payment assistance programs can be a great fit for many would be homeowners, who wouldn’t otherwise be able to purchase a home on their own.  After educating yourself on how different down payment assistance programs function, you may well discover that it is the perfect way to turn you from a renter into a homeowner.

There are many different types of down payment assistance programs available.  We have programs fit for different geographic regions as well as different personal situations.  There are general programs offering $1,000 to $10,000 in assistance, as well as more specific programs offering up to $45,000.

The amount of down payment assistance a person is eligible for will depend on their financial situation.  A needs assessment form will take several factors into consideration to determine the amount of assistance alloted.  The amount will depend on such things as a person’s income, liquid assets (not including retirement accounts or 401Ks) and the purchase price of the home.

You must attend one of our Home Buyer workshops to be eligible for our programs.  The Washington State Housing Finance Commission requires that you attend one of our workshops in order to apply for down payment assistance.  The workshop is FREE, and there is no obligation to move forward in the process if you decide the programs are not a good fit for you.  If you would like to  learn more about the programs, or gather more information on the home buying process in general, go to our Calendar/Reservations page and sign up for one of our free Home buyer workshops.

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