TheMReport

MReport_July2015

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22 | Th e M Rep o RT Feature Availability of Programs D PR tracks 2,290 programs in its search tool nationwide. According to the refer- enced joint analysis with RealtyTrac, here are some key facts: • Approximately 91 percent of programs have funds available now for homebuyers. • The average amount of down payment assistance across all counties is $11,565. • At least one homeownership program is available in all 3,143 U.S. counties, and more than 2,000 counties have over 10 down payment programs available to prospective homebuyers. • More than half of the down payment programs (54 percent) are Community Seconds, where a second mortgage is issued by a Housing Financing Agency or nonprofit organization with a very low or no interest rate. The payment on the second mortgage may be deferred or forgiven incrementally for each year the buyer remains in the home. • Twenty-four percent of programs are available statewide, not specific to a county or neighborhood. There are more than 300 programs in California alone that currently have funding available. Based on recent research conduct- ed by DPR, more than 100,000 California property listings would be eligible for one of the down payment assistance programs based on the sales prices alone. Using the California programs as an example, households with incomes ranging anywhere from $40,000 to $167,000 annually could qualify and benefit for such programs. The allowable sales prices are even as high as $747,000 for a number of programs, with down payment/closing cost help ranging from $3,000 to more than $100,000. Chrane says, "The down payment has long been the number one barrier to home- ownership, especially for entry level buyers . . . . It's important for homebuyers to research all their home financing options, including homeownership programs, to ensure they find the right fit for their personal situation." Energy Efficient Mortgage Programs A nother specialty program that helps homebuyers is the Energy Efficient Mortgage (EEM). The EEM is an FHA-in- sured loan that rolls some of the borrower's costs of upgrading a home's energy efficiency into the financing of the first mortgage loan, up to 5 percent of the first loan amount. Borrowers save money on their utility bills while making their home more comfort- able. One-hundred percent of the cost of the improvements (subject to caps in certain counties) is added into the first mortgage loan so there is no out of pocket expense. One product is the California Housing Finance Agency's CalEEM + Grant loan. The grant portion is what makes this one tick: CalHFA will grant an additional 4 percent of the purchase price so a borrower can do some serious upgrades, like solar panels or a new A/C unit, instead of the small stuff. Says Tia Boatman Patterson, Executive Director of CalHFA, "The CalEEM + Grant makes more sense every day as we see the mounting effects of climate change on the way we live. Anything homeowners can do to save energy and be more efficient will certainly pay for itself in the long run." Niche Programs and Additional Awareness C alHFA, as well as other state housing finance agencies, also offer unique down payment assistance programs. CalHFA's Zero Interest Program loans up to $6,500 to borrowers at 0 percent interest, and there's also the federal Mortgage Credit Certificate, which can give borrowers a direct tax credit in proportion to the mortgage interest they pay. Another entity in California that helps homebuyers is the Golden State Finance Au- thority (GSFA). Over the past 20 years, GSFA has helped more than 47,848 individuals and families purchase homes, gifting just under $61 million down payment assistance alone. GSFA has also provided financing for 1,284 home- owners making home energy improvements. In Colorado, CHFA offers fixed rate loans, down payment and closing cost assistance, and homebuyer education classes. "All of our programs are designed to meet the unique "It's important for homebuyers to research all their home financing options, including homeownership programs, to ensure they find the right fit for their personal situation." —Rob Chrane, CEO of Down Payment Resource

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