Understanding Assistance Programs
Flat Branch Home Loans
Down payment assistance programs are created by state housing financing agencies in order to make homebuying more affordable for everyone. They will help cover your down payment and, in some cases, closing costs or other costs associated with buying a home. They are always coupled with a normal home loan.
Eligibility:
Eligibility for these programs typically hinges on income, purchase price limits, chosen loan program, credit score prerequisites, and the location of the home. Certain programs may also require completion of a homebuying education course alongside other qualifications.
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Who’s eligible for down payment assistance?
To be eligible for these programs, it typically depends on income and purchase price limits, what loan program you’re using, credit score requirements, and what county the home being purchased is in. Some organizations will require borrowers to take a homebuying class in addition to the other qualifications.
State Specific
MHDC (MO) - Missouri residents benefit from MHDC's First Place and Next Step programs, providing assistance as a percentage of the first mortgage amount, forgivable after ten years.
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Benefits
First Place:
- Available to first-time homebuyers and veterans
- Assistance is 4% of the first mortgage amount
- Forgiven after you’ve been in the home for 10 years
- 30-year fixed rate
-Lower interest rates for homebuyers in opportunity areas
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Next Step:
- Available to first-time homebuyers and veterans
- Assistance is 4% of the first mortgage amount
- Forgiven after you’ve been in the home for 10 years
- 30-year fixed rate
- Lower interest rates for homebuyers in opportunity areas
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KHAP (KS) - Kansas Housing Assistance Program offers up to a 5% grant for down payments or closing costs, adaptable with FHA and conventional loans.
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Benefits
- 30-year fixed rate mortgage
- Up to 5% grant for down payment or closing costs (percentage amount depending on loan type)
- Can be used with FHA and conventional
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There are local grants based out of certain locations that you can potentially qualify for depending on your financial and familial circumstances. Your Flat Branch loan officer can help you determine which programs you qualify for.
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ADFA (AR)
The ADFA (Arkansas Development Finance Authority) residents benefit from this down payment assistance program.
Benefits
DPA:
- For qualifying applicants of an ADFA Move-Up Choice loan program
- $1,000-10,000 in for down payment and closing cost assistance
- 10-year term
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