HOP Down Payment Assistance- use Anywhere in Michigan!

By
Mortgage and Lending with Providence Home Mortgage/ICCF

Have you or your clients been stressed that down payment assistance went away in September?! Stress no longer! It is true that seller funded down payment assistance went away, but seller funded down payment assistance was only one kind of "DPA". I am sure that it had its place and was used often enough, however, in five years of doing loans, I never used seller funded DPA, not even once! Why?! Because I am the Queen of finding my income qualifying clients down payment grants from City http://activerain.com/blogsview/834247/City-of-Grand-Rapids-Down-Payment-Assistance-Program-we-CAN-make-it-work, Non-profit, or Bank grant programs, grants that don't result in the increasing of sales price (which can be really tough to get by underwriting in our declining Michigan market).

So, let me tell you about HOP Funds. HOP (Home Ownership Program) Funds come from the Federal Home Loan Bank, and they get assigned to different banks. We just so happen to be fortunate that one of our bank partners gets enough funds to pass around. Some might think it is incredible that a bank would allow a broker to use these funds that they could keep in house. It is pretty incredible, but I think their mindset is, better to use them than lose them!

Key requirements are:

  • Must be at or below 80% Area Median Income (i.e.- family of 1- $34,800, 2- $39,750, 3- $44,750, 4- $49,700)
  • Up to $5,000 in down payment assistance
  • 3 to 1 match program, so client needs $1,667 to get full $5,000
  • Can be used for principal reduction, closing costs, or pre-paids
  • Can be combined with other down payment programs
  • Only $500 needs to be the clients own funds, the rest can be a gift
  • Can be combined with FHA, VA, RD, MSHDA
  • Grant is forgiven over the course of five years, repayable only at time of sale (out of proceeds) or refinance (some exceptions apply)
  • It is a zero interest, no payment loan, and the money that is forgiven is prorated by each month

For more information, give me a call at (616) 719-4513

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Michigan

Anonymous
Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
76,119
Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

This sounds great,

I wish Florida would get on the ball!

Great Post.

Dec 15, 2008 04:55 PM #1
Ambassador
287,956
Tim and Pam Cash
Crye-Leike (Sango) - Clarksville, TN
Real Estate Professionals - Clarksville TN

Danell, looks like a great deal.  I hope it helps to move some properties.

Dec 15, 2008 06:56 PM #2
Rainmaker
75,075
Michelle Gordon
Keller Williams Realty, Independently owned and operated - Grand Rapids, MI

Danell, I am letting everyone I know.................about this!  Good news!

Dec 16, 2008 07:51 AM #3
Rainer
198,094
Ed Vogt
Midwest Properties of Michigan - Grandville, MI
Grandville, MI Midwest Properties

This is really a good program, Danell.  Thanks for the e-mail to remind everyone these funds are available. 

Dec 19, 2008 03:31 PM #4
Rainmaker
160,070
Colleen McConnell
Tallahassee, FL
Tallahassee Retired Realtor

If the money comes from the Federal Home Loan bank, I assume it's available in every state, correct? What sort of affect does using this money have on interest rates? In some instances, using bond money in FL for DPA comes with a higher interest rate.

Dec 30, 2008 05:55 AM #5
Rainmaker
69,393
Mobile Austin Notary
Apostille/Authentication/Embassy Legalization, Notary Public, Loan Signing Agent & Process Server Services - Austin, TX
www.mobileaustinnotary.com

This is great!!! I think every buyer should know about this!!thumbs up

Jan 29, 2009 01:42 PM #6
Rainmaker
75,075
Michelle Gordon
Keller Williams Realty, Independently owned and operated - Grand Rapids, MI

Just heard they are done with this DPA for 2009, if loan in progress need to close by the end of the month..................bummer!

Sep 09, 2009 07:18 AM #7
Anonymous
Anonymous
Danell Merren

Total bummer!

Sep 09, 2009 07:21 AM #8
Rainer
12,519
Gabriele Buonacorsi
Coldwell Banker Premier Realty - Henderson, NV

i WISH WE HAD THAT HERE

Oct 19, 2009 12:19 PM #9
Anonymous
Post a Comment
Spam prevention
Show All Comments
Rainer
19,846

Danell Merren

Ask me a question
*
*
*
Spam prevention