First Time Home Buyers
Many first-time homebuyers struggle to save all the money needed to pay for the down payment and closing costs. In high cost areas, like Philadelphia with a 2% transfer tax to the buyer, it can be even more challenging.
Fortunately, we have some programs that can help and we have a great deal of experience with people buying their very first home.
Below are some of our loan options that may help you. In addition, we recommend reviewing our Mortgage FAQs page for answers to common questions and some good basic info on buying a home.
This is a great option when combined with an FHA loan. With the BMC Advantage loan you can make a small down payment (3.5%) and get up to $6,000 (or 4% of sales price, whichever is LESS) to help with down payment or closing costs. In addition, the seller can also pay up to 6% of the sales price to cover almost all the other costs. This loan program does require that you have a 660 score and contribute at least 1% of the sales price or $1,000 (whichever is LESS) of your own money into the trasaction.
The VA option allows qualified veteran borrowers the ability to put zero down and use the Advantgage funds to cover all closing costs. The seller is also allowed to pay all or just a portion of the veterans' closing costs. There is NO minimum contribution needed from the borrower on VA Advantage Loans.
See more Details here: Advantage Down Payment
For sales prices up to $200,000 you can now get up to $6,000 to cover your full 3% down payment. Combined with seller assist, this reduces the amount of money needed substantially allowing you to keep more of your savings for decorating or repairs. For higher sales prices you can still get $6,000 but it then becomes "Almost ZeroDown".
Another great feature is that this loan has ZeroPMI so it could result in a lower payment than a tradtional 3% or 5% down loan which requires PMI.
See how it works here: ZeroDown Loan
Employer Assisted Housing (EAH)
If you work for a company who has partnered with PHFA to provide home purchase benefits to their employees, you can get up to $8,000 under the BMC Advantage or ZeroPMI ZeroDown programs instead of just $6,000.
To see if your employer participates, please click here: EAH Employers
If your employer is not on the list and you would like them to participate, please send us the name and contact info of your Human Resource representative and we will get the ball rolling.
BMC Homestead Loan
You can get up to $10,000 in forgivable funds if you meet certain guidelines and buy a home in an elgible area. These funds can cover your full down payment and closing costs. If you stay in the home for at least 5 yrs the secondary loan is completely forgiven - you never have to pay it back!
See how it works here: $10,000 Down Payment Assist
This is where borrowers take a higher rate in exchange for the lender paying for some or all of the closing costs. The advantage is that these funds do not have to be paid back and can bridge the gap in negotiations over seller assist. The drawback is that these funds cannot be used towards the borrower's minimum down payment requirement.
How to choose?
Rates and qualifications for these programs can change frequently so we always evaluate and discuss your options with you so you can make an informed decision that is best for your homeownership goals.
Give us a call or contact us thru the link below to have a worthwhile conversation about your personal situation.
Contact Boulevard Mortgage