FIRST-TIME
Buyer
Homeownership
35% of non homeowners do not have enough money to put towards the down payment on a house
40% are not aware of the down payment requirements required by lenders
30% of homeowners and 30% of renters believe 20% is required down payment and 42% are not aware of any low-down payment mortgage options
63% of Millenials have no money set aside
In August 2021, Freddie Mac’s Housing Price Index showed 19.67% year by year housing price increase putting additional pressure on down payment requirements
Source: Freddie Mac Urban Institute Report Barriers to Accessing Homeownership
Gift, Grant and Affordable Seconds
Myths and Facts
MYTH
DPA programs are only for first-time homebuyers
FACT
Not all programs specify that you must be a first-time homebuyers. 38% of programs do not have a first-time homebuyer requirement.
MYTH
It’s difficult to qualify for DPA programs.
FACT
There are many options and opportunities. There are more than 2,500 DPA programs available.
MYTH
DPA Programs make home financing more difficult.
FACT
When using a DPA programs, it does require additional paperwork; however, the paperwork is similar to what is already being done on the loan transaction.
MYTH
DPA Programs cannot be layered.
FACT
DPA Programs can be utilized with any other eligible sources of funds that the borrower is utilizing to qualify for the mortgage transaction.
MYTH
DPA Programs are only for low-cost homes
FACT
87% homes are eligible for one or more programs ranging in value from $200, 000 to $700,000 in high-cost markets.
MYTH
DPA programs are only compatible with FHA Loans
FACT
Many DPA programs are compatible with FHA, VA, USDA and conventional loans.
Summary
DPA: Combination of Gift/Grant/Affordable Second
Amount: Up to 7% of Purchase Price
Income: Based on County.Reasonably High Limits.
Credit Score: 620+
DTI: 45% to 50% based on credit
Occupancy: Owner Occupied Homes Only
Units: 1 unit to 4 units
6101 Bollinger Canyon Rd #344, San Ramon, CA 94583
Toll Free Call : (866) 280-0020
Copyright ©2023 Shining Star Funding A division of American Pacific Mortgage LLC | NMLS ID # 1850 (www.nmlsconsumeraccess.org) | 6101 Bollinger Canyon Rd #344, San Ramon, CA 94583 Phone (925) 820-2981 | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.
Interactive calculators are self-help tools. Results received from this calculator are designed for comparative and illustrative purposes only, and accuracy is not guaranteed. Shining Star Funding is not responsible for any errors, omissions, or misrepresentations. This calculator does not have the ability to pre-qualify you for any loan program or promotion. Qualification for loan programs may require additional information such as credit scores and cash reserves which is not gathered in this calculator. Information such as interest rates and pricing are subject to change at any time and without notice. Additional fees such as HOA dues are not included in calculations. All information such as interest rates, taxes, insurance, PMI payments, etc. are estimates and should be used for comparison only. Shining Star Funding does not guarantee any of the information obtained by this calculator.
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