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do some of the programs that help individuals with their downpayment hurt them by not getting the lo

I am looking to purchase a condo and there are programs in ILL that will give individuals 6000k if they reside for 5 or more years in the property however it would give me a higher APR of 3.87% if I don't take it I would get a lower APR of 3.50 is there some way that I could get a lower rate and still receive assistance from some of these programs my credit score is 800,

  • November 02 2012 - Chicago
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Answers (3)

Is the 6k worth the overall interest paid over the term of the loan. Will your rate drop after the 5 years? The 6k usually comes as down payment or closing cost assistance. If you used an FHA loan 3.5% down and the seller helped you with closing costs. Where would you need the grant? It is virtually a loan if your interest rate is changing. Nothing is free.

 Ask your lender if they can get you a lower rate, I'm not sure what prime is at the moment, but with an 800 CS you may be as low as you can go.  Most of the programs are income based so if you make too much $ you won't qualify anyway.

  • November 22 2012
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Are you more interested in the lowest down payment possible or the lowest rate possible? There are more options out there you may not be aware of. You should really contact your lender or broker and go over these programs in detail. You never know, there might be a program that is right up your alley that you may be unaware of. Good luck! You can always contact me if you need more help.
  • November 22 2012
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I believe you may be referring to the IHDA program.  I'm not sure if $6,000 is currently available.  The program I've had clients use before has limited funding that typically begins in April and runs out by July/August.  The IHDA program may have a slightly higher rate, but I think it has lower PMI.  I'd suggest contacting a knowledgeable lender that works with the program to find a suitable loan product for you situation.
  • November 03 2012
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