Today I wanted to talk to you about the Home in 5 Advantage Program. This is a government grant program that gives you 5% towards your down payment and closing costs.
We have sold more than 100 homes using this program since it was launched in 2012. Recently, there have been rumors that the program is almost out of money, so anyone who wants to cash in on this program needs to do so quickly.
There are a few requirements you need to meet in order to be considered eligible for this program.
First of all, the maximum home purchase price for this program is $300,000. Right now, there are 3,600 homes currently on the market priced between $200,000 and $300,000, so you do have a lot of options to choose from. Your mortgage payment would run from $1,100 to $1,500. If that’s about what you’re spending on rent, you could purchase your own home today with no money out of pocket.
You only need a 640 credit score to qualify.
You may wonder about the extra $5,500 or $6,000 you would be responsible for after you get the grant money. Don’t worry - in most cases, we are able to get the seller to pay that so you can get into the home without putting any money down.
This program will get you a 30-year fixed rate home loan, whether you are using an FHA, VA, or USDA loan. Remember, this program gives you a grant, so you don’t have to repay the money from Home in 5 Advantage.
You only need a 640 credit score, which is pretty low. The maximum debt-to-income ratio allowed is 45%. If you’re not sure what yours is, call us and we can help you figure it out.
There is no first-time home buyer requirement for this program. You could be buying your second, third, fourth, or even fifth home and still qualify.
The maximum qualifying income is $88,000. If you are making more than that, you won’t necessarily qualify for this program. However, there are other programs available, such as FHA loans, which only require 5% down.
Finally, if you are active military or a veteran, the down payment assistance is increased to 6%.
If you have any questions about this program, now is the time to ask them. Take advantage of this program before the funding runs out. Give me a call or send me an email. I would be happy to help you!