Down Payment Assistance Programs

A home buyer with no down payment should use Down Payment Assistance. A nonprofit home grant with down payment assistance can immediately solve a dilemma and provide a buyer the money necessary to become a home owner.

Down Payment Assistance Program
(DPAP) provides homebuyers with free gift money to use towards the downpayment, closing costs, and other funds needed to purchase a home. Up to $20,000. The funds provided to Buyers by a Program are true gifts. No lien is recorded against the home and there is no expectation of repayment.

Buyers benefit
The power to purchase a home with No Money Down. There are many people that have good jobs and acceptable credit histories but that have not been able to save the considerable amount of money that is necessary for the down payment and closing costs to purchase a home.

Sellers benefit
Homes have a better chance of selling faster, and at full asking price, than a seller that does not participate with down payment assistance they are able to market their homes to a larger pool of prospective home buyers than a non-down payment assistance home. Think about it, there are more people in the U.S. that can qualify for a home credit.com loan but lack the down payment, than there are people who already have the down payment.

Qualifying requirements
The mortgage loan must accept gift funds for use as your down payment (such as FHA) and that you purchase a home from a Seller that will participate in the Program to assist you in buying your home. In other words, if you are approved for your loan you are automatically eligible for a grant as long as the Seller of the property you are buying will participate in the Program.

Down Payment Assistance
Seller Net Sheet Comparison

Seller Estimated Net
Proceeds Calculator
Example Sale
w/o DPAP
Example Sale
with DPAP
List Price of Home $ 100,000 $ 100,000
Average % Reduction 5% 0%
Sales Price $ 95,000 $ 100,000
Less: DPAP Gift + $540 fee $ 0 $ (3,540)
Less: Sales Commission $ (5,700) $ (6,000)
Less: Closing Costs Estimate 2% $ (1,900) $ (2,000)
Net Proceeds to Seller $ 87,400 $ 88,460

Definitions
List Price of Home - The Asking Price at which a home is originally offered for sale.
Average % Reduction - The difference between the Asking Price and the actual Sales Price. The average % Reduction is the average of these differences and usually ranges from 3% to 7% depending on the specific real estate market.
DPAP Gift - This is the donation to the DPAP and is equal to the gift amount plus a processing fee of $500 and $40 wire fee. This example assumes the DPAP has made a gift of $3,000 to the Buyer.
Sales Commission - Real Estate sales commissions usually range from 6% to 7%.
Closing Costs - These are the standard costs associated with selling a home and include settlement charges, title searches, inspections, transfer taxes, etc.

All else being equal
Remember, the seller is NOT obligated and DOES NOT make a donation to the Program if a Buyer that does not use the Program purchases their home.Sellers Net Proceeds will be approximately the same whether or not you utilize down payment assistance, consequently you might as well benefit from the increased marketing abilities and decreased marketing time by offering down payment assistance.

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