Down Payment Assistance
Mojave River Mortgage's Empowered Down Payment Assistance (DPA) Program helps homebuyers by offering a forgivable grant of 2% or 3.5% of the home’s purchase price for use toward the down payment. Eligible borrowers include first-time buyers, professionals, and those in underserved areas or within income limits. The program supports various property types and requires a minimum credit score of 580, a DTI ratio under 50%, and completion of homebuyer education. Seller concessions up to 6% are allowed. Available in California, it applies only to 30-year fixed FHA loans. It’s a great option to make homeownership more accessible.
Achieving homeownership can be challenging, especially when it comes to gathering the necessary funds for a down payment and closing costs. To assist prospective buyers, Mojave River Mortgage offers the Empowered Down Payment Assistance (DPA) Program, designed to make purchasing a home more attainable.
Key Features of the Empowered DPA Program:
- Forgivable Grants: The program provides a completely forgivable grant of either 2% or 3.5% of the home's purchase price. This grant can be applied toward the down payment and does not require repayment after six months, provided certain conditions are met.
- Broad Eligibility: The Empowered DPA Program is accessible to a wide range of borrowers, including:
- First-Time Homebuyers: Individuals who have not owned a home in the past three years.
- Professionals and Volunteers: Current or retired employees, as well as volunteer or non-paid members, are eligible.
- Income Considerations: Applicants with incomes at or below 140% of the state or county median income may qualify.
- Underserved Areas: Residents purchasing homes in underserved census tracts are also eligible.
- Property Flexibility: The program supports various property types, including:
- 1-2 unit primary residences
- Manufactured homes
- FHA-approved condominiums
- Planned Unit Developments (PUDs)
- Credit Requirements: A minimum FICO credit score of 580 is required for Approve/Eligible recommendations, while a score of 620 is needed for Refer/Eligible recommendations.
- Debt-to-Income Ratio: The program allows flexibility in debt-to-income (DTI) ratios
- Homebuyer Education: At least one borrower must complete a homebuyer education course through Framework Homeownership or any HUD-approved counseling agency.
Additional Considerations:
- Seller Concessions: The program permits up to 6% seller concessions to assist with closing costs.
- Geographic Availability: While the program is available in California
- Loan Terms: The Empowered DPA Program is applicable exclusively to 30-year fixed-rate FHA loans.
For those struggling to accumulate sufficient funds for a down payment, the Empowered DPA Program presents a valuable opportunity to bridge the financial gap and achieve homeownership. Prospective buyers should consult with an EPM loan officer to determine their eligibility and gain a comprehensive understanding of the program's benefits and requirements.