Profile picture for marauderette

Are there any private programs providing downpayment/closing cost assistance without an income cap?

Alternatively, are there any zero downpayment programs left exclusive of the VA loan?

I'd like to give further details regarding my question: In this particular case, the borrower will be purchasing the home as a primary residence using an FHA loan but there is also a non-occupying co-borrower, who needed to be included for the pre-approval due to the borrower's debt to income ratio. Due to the co-borrower's income level, all federal grant/loan programs offering downpayment assistance are out, correct? (Even if the borrower's income would qualify for such programs?)

Second question: Are there any "private" downpayment/closing cost assistance programs in existence?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 27 - San Jose
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

There are actually down payment assistance programs available in every community. They include: down payment and closing cost assistance, grants, below-market rates, Mortgage Credit Certificates, rehab loans, among others. Both the home and the borrower must qualify - eligibility requirements vary from program to program. In addition, these programs can be layered. For example, a VA or FHA loan with a down payment grant. Contact your state or local Housing Finance Agency to find out the options in your area. You can also search our Down Payment Resource Center at downpaymentresource dot com. These can be much better options for the buyer than family "gifts" or cashing out a 401K, plus they typically require valuable homeownership education.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 28
Closing cost are easy, those can be handled via seller credit (FHA allows up to 6% of sale price) or lender credit (slightly higher interest rate to allow for a "rebate" from the lender to assist with closing cost). These two options can only be used for closing cost (including prepaid items). As far as down payment, that would need to come in the form of a gift (at this point I would look to the non-occupant co-borrower). You are looking for 3.5% of the sales price, quite honestly I would rather give down payment rather than co-sign a loan. Also be sure to check out secured sources of down payment (cash value life insurance, 401K loan, etc)
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 28
Profile picture for wetdawgs
The USDA loan program has an income cap.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 28
Hi Marauderette,

Is the DR 50% or less without the non-occupying co-borrower? If so, the NHF Sapphire Grant program may be an option.

The only other option would be to purchase a home in a rural area and use the USDA loan program.

Best regards,
Elva
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 28
Profile picture for wetdawgs
If you are including a co-borrowers income for qualification, it has to be included in all parts of qualification.

The only private down payment assistance programs I know of are variations of the bank of Mom and Dad.

Frankly, it doesn't sound like the buyer is financially ready to buy today, but is at the stage where it is worthwhile to put together a savings program for down payment/closing costs and an income improvement program.

 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 27
 
Related Questions
Can i buy the house of my sister the same amount own to bank?
Profile picture for Bryan Sweeley
Latest answer by Bryan Sweeley
4 days ago | 2 answers
San Jose - Safe Areas
Profile picture for Julie Wyss
Latest answer by Julie Wyss
August 29 | 1 answers
Does being too close to freeways or commute corridors decrease or increase the value of a home?
Profile picture for Sam Shueh
Latest answer by Sam Shueh
August 16 | 6 answers
good job, high income, bad credit - want to buy a condo
Profile picture for Paul Deibler
Latest answer by Paul Deibler
July 31 | 4 answers
Are there any private programs providing downpayment/closing cost assistance without an income cap?
Profile picture for Tracey Shell
Latest answer by Tracey Shell
July 28 | 5 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 533 Adeline Ave, San Jose, CA Home For Sale
    533 Adeline Ave, San Jose, CA 95136

     For Sale: $557,000

    • Beds: 3
    • Sqft: 1810
    • Baths: 2.5
    • Lot: 1481
  2. 5949 Wildflower Dr, San Jose, CA Home For Sale
    5949 Wildflower Dr, San Jose, CA 95123

     For Sale: $699,000

    • Beds: 5
    • Sqft: 2735
    • Baths: 3.0
    • Lot: 4150
  3. 288 Sunnyslope Ave, San Jose, CA Home For Sale
    288 Sunnyslope Ave, San Jose, CA 95127

     For Sale: $489,900

    • Beds: 3
    • Sqft: 1008
    • Baths: 1.0
    • Lot: 6751
 
 
 
Sign in with Google