Monday, August 3, 2009

Down payment assistance

A bit of news on the first time home buyer front, our firm has recently gained access to $7million in grant money which can provide up to $10,000* in down payment assistance. Through a longstanding relationship with one of our wholesale lenders, we're now able to offer qualified borrowers a 5:1 down payment match up to $10,000.

$1,000 Borrower Funds = $5,000 Grant

The borrower must have a minimum of $1,000 in the transaction but these funds CAN be a gift from a family member. This is an excellent opportunity for those buyers who want to extend their down payment dollar. Another very positive aspect of this program is that there are no property restrictions and the grant can be used in conjunction with FHA loans. From what I know so far, we're the only broker that has access to anything like this. You still have to go through the qualification process as you would for any loan product, but this is definitely worth looking into. The grant cannot be used in conjunction with USDA products. The program is still very new and we're currently working through our first deals - so if you have any technical questions, just give us a call.

Current State of the Market
The bond market started off in a lull today, which will push today's rates in an upward direction. Also, today's announcements by the ISM (Institute for Supply Management) was positive - the manufacturing index rose higher than what was expected. This good news for our overall economic recovery but isn’t positive news for mortgage rates which you may see idling around 5.25% this week. Tomorrow reports concerning the state of Personal Income and Outlays will be released. Again, if the findings are positive, expect rates to worsen or maintain their current course.

DNJ Mortgage
1350 Sunday Drive
Raleigh, NC 27607
919.459.6560

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