Why do you hardly ever hear of people successfully taking advantage of down payment assistance programs here in the Bay Area? So many programs are available, but most find they are not easily qualified. Often, the government's processes will hinder the ability to close on the purchase within a reasonable timeline.
With hundreds of down payment assistance programs available, you would think that more people would take advantage of them. But the fact is that almost nobody does.
When you crunch the numbers, it often doesn’t make sense for first-time home buyers already strapped for closing cash.
Most of these programs are limited to a small group of people, or when you pencil out the figures, the monthly payments are too high. Often these down payment programs come with some "gotcha" catch like equity sharing or a high interest rate on down payment funds provided.
In many cases, assistance programs are often equity-sharing programs or 2nd mortgage options from the government.
If you’d like to purchase a house but are struggling with your down payment, we advocate for only one program that truly helps homeowners.
The Bay Area Empowered Guardian grant is different because it’s 100% forgivable; we’ve seen people get funding up to $50,000 offered through the public finance authority and paired with a loan from the Federal Housing Administration.
Its 100% forgivable grant will disappear once your first mortgage is funded. Essentially, you will have instant equity in the home at closing.
After six months of on-time mortgage payments, most home buyers can significantly reduce their original mortgage payments using the Government's Federal Housing Administration's Streamlined Refinance program.
To Qualify At Least One Borrower Must Meet At Least One of the Following Criteria
- First time home buyer
- Military personnel
- First responder (police officer, firefighter, public safety officer, paramedic, emergency medical technician (EMT) or similar
- Educator (Sunday school teacher, tutor, daycare provider)
- Medical personnel (nurse, doctor, X-ray technician, hospital administrator, or similar)
- Civil servant in a Federal, state, or local municipality A (basically anyone who has been a volunteer)
The civil servant qualification makes it available to almost anyone willing to volunteer for at least one day.
Once you determine your comfort level with monthly payments, we can show you exactly how much you could acquire using this grant.
Using this Bay Area Empowered Guardian Grant, you can pay for
- CLOSING COSTS
- DOWN PAYMENT
- REALTOR COMMISSIONS
- IT CAN BE PAIRED WITH OTHER SELLER CONSESSIONS
One of the most important aspects of purchasing a new home is making sure that the monthly payments are affordable and comfortable for you to make on an ongoing basis.
The absolute first step is to find out what your comfortable monthly payments would be.
Ask your lender to crunch the figures for you and determine your most comfortable monthly payment.
Use that payment to determine the house you can afford, and with that information, find out how much grant funds you can secure from the federal housing authority.
If you already have a trusted Mortgage Broker, could you talk to them today and ask them for the Empowered Guardian Grant?
If you need help, ask us how to calculate your comfortable monthly payment and see if you qualify for the grant funds here.
One feature that makes this particular down payment assistance program attractive is that it is a 100% forgivable grant, not just another government loan.
In most cases, we can lower the payments on your first mortgage after six months of on-time payments by at least a few hundred dollars, depending on how much you owe.
You can often lower the interest rate on the first mortgage by about 2%, saving the homeowner hundreds per month in mortgage payments and usually thousands of dollars in interest payments to the bank over the life of the original first mortgage.
Here is a list of the newest homes for sale in Contra Costa County that should qualify for this homeowner grant.
Every situation is different, so you’ll want to review your details and determine whether this makes sense.
Some of the main highlights and Benefits of this program are
HIGHLIGHTS AND PROS EMPOWERED GUARDIAN GRANT
- Forgivable assistance toward the down payment 100% forgiven
- Instant equity at closing
- Can be combined with other gifts and up to $6,000 of seller credits
- Homeowner Counseling required through HUD
- There are many different ways to qualify
- Nonoccupant co-borrowers are allowed - If you need a co-signer who will not live with you.
- Borrower can receive a gift from a family member and pair it with this grant.
CONS OF THE EMPOWERED GUARDIAN GRANT
- Funds are limited and could run out.
- Funds may not be available for ALL; qualifying guidelines apply
- The FHA loan paired with the grant will have a slightly higher-than-market rate for at least six months.
- After you make six payments, you can utilize the FHA streamline refinance to lower your rate up to 2%
- This Grant may NOT be paired with other down payment assistance programs.
- Cannot be paired with a solar system.
$32,977 Home Buyer Grant Example Scenario
For example, we helped somebody secure over $33,000 in a forgivable grant through the public finance authority; after six months of mortgage payments, the grant money was 100% forgiven, and the homeowner had instant equity. In addition, we could refinance the original mortgage through the Federal Housing Administration Streamline program, and we saved them almost $400 a month on their mortgage payment.
What’s great about this streamlined program is that if you qualified for the original loan, you would likely be able to do your streamlined refinance six months later to lower your interest rate by about 2%.
With this streamlined government loan, you don’t have to qualify for income or provide W2s; we don’t need to look at the property's appraisal or anything like that.
You should qualify for the refinance if you’ve made all your payments for the past six months and haven’t destroyed your credit.
Learn more about this innovative strategy and take advantage of this 100% forgivable Bay Area Homebuyer Grant Program so that you can jump in and take advantage of equity gains in the real estate market.
Like with anything, there are a few qualification guidelines and rules. Learn if you might be eligible today.
Ask your lender about the home buyer Community Guardian Grant, or if you don't already have a lender, you can call or text and ask us about the Bay Area homeowner grant. Let’s Talk!
JASON WHEELER 925-285-2172
Some of the groups that usually benefit the most from this program are:
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First-time home buyers
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State/County Median Income of 140% or lower - Check here
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Military Personnel - Active duty or veterans
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Public school teachers - Public school, Sunday School, Daycare admin or teacher Tutor
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Medical Professionals - Nurse doctor, X-ray technician, hospital administrator, or similar
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Police Officers
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First Responders
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Unpaid community volunteers - PTA, coaches, community volunteers, civil servants, Boys or Girls Club.
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Community youth coaches
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Just about anyone who has a volunteer record in the community
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Underserved Census Tract Properties - Check here.