Do you allow good loans to die? – NMP

The money is not just distributed, however. Many of these assistance programs have eligibility requirements. For example, nearly 20% cater to special groups such as veterans, first responders, educators, and people with disabilities or other special circumstances. About two-thirds are confined to first-time buyers. In Roseville, Minnesota, for example, first-time buyers could be eligible for loans of up to $25,000 repayable when the borrower moves.

There are often other restrictions, including limits on purchase price, location, type of property, credit ratings, homeownership history, qualification ratios, and liquidity. In Gaithersburg, MD, buyers in an opportunity area within the city limits are eligible for down payment assistance of up to 10% of the purchase price, not to exceed $25,000.

Many plans also have income limits, but these can be misleading. In some high-cost markets, the income cap may exceed 180% of the median area income. And 38% do not include a first purchase requirement. Even with income limits, however, the benefit can run into the tens of thousands.

In Miami-Dade County, Florida, for example, the 53 installment assistance programs currently available offer benefits ranging from $2,125 to $150,000. In Austin, Texas, a family of three to six earning up to $80,000 has access to 24 different programs, including a federal tax credit of $2,000 per year for the term of the mortgage, a grant of 6% of the loan amount to be used towards a down payment and closing costs, or an interest free loan of 5% of the loan amount to be used towards the down payment and closing costs.

In Denver, Colorado, a three-person household with a veteran or military candidate earning $100,000 a year and buying a $300,000 home has access to 21 programs, including a non-first-time buyer program offering up to three years, Second repayable mortgage of $17,100 and principal loan at below market rate.

And in Jacksonville, Florida, a one-person household who is a teacher with an annual income of $70,000 has access to 17 programs, including a “silent” second mortgage of $15,000, a “forgivable” second mortgage up to 5% of the loan amount for down payment and closing cost assistance and a federal tax credit of $2,000 per year for the term of the mortgage.

Nationally, according to the latest count from the DPR, the average down payment is $15,664. And across all 2,065 programs that are loaded with money, the average benefit of all kinds, not just down payment assistance, is $24,263. Granted, that kind of money is enough to save at least some offers that you are currently declining. not

EDITOR’S NOTE: A recent column indicated that Freddie Mac was currently involved in a single-family rental pilot program, but that short-lived initiative ended in 2018.