My next couple of blogs will concentrate on the best loan programs for home buyers. The first is an FHA loan called the Platinum Grant Program. Normally FHA loans require a minimum contribution from the buyer of 3.5% down payment.
The Platinum Grant requires only 1/2% down payment from the buyer, the other 3% down payment comes courtesy of a grant, not to be paid back by the buyer.
There are some strict guidelines that have to be met by the prospective buyer. The home has to be owner occupied, that’s the case with all FHA loans. The buyers income can not exceed $87,000 per year.
The buyer can request in their purchase contract up to 6% seller contributions for closing cost. Interest rates are fixed at 4.5% and is very reasonable considering the low down payment required for this program.
Here’s an example that Rick Carrie from MetLife Home Loans in Davis prepared specifically for this blog. A couple renting for $1500.00 a month.
By utilizing the Grant Program, they can buy a home at $215,000 and pay the same amount for the mortgage that they were paying in rent. They also get the tax benefits from ownership.
Assuming the buyer uses the 6% seller contribution for the closing cost,
the buyer would only come out-of-pocket for $1,075.00 to purchase their property. This is an amazing opportunity for the individual or family that wants to pursue a home now. Do you know of anyone that might be interested in this program?