BOULDER – Buying a home isn’t easy, but it just got a little more affordable. Guaranteed Rate is now offering its own Down Payment Assistance program, Give 2 You. This is a national program that offers buyers a two-percent grant from Guaranteed Rate.
The way it works is simple: borrowers contribute 3% of the down payment and Guaranteed Rate will contribute an additional 2%, bringing the total down payment to 5%.
Of course, this program comes with stipulations. These include:
30-year fixed purchase transactions only
Conforming loan limits only (with a max of $453,100)
Borrowers must put 3 percent down from their own funds (no gifts can be applied, however borrowers may use retirement funds)
All one-unit property types are eligible
Borrowers must have a FICO score of at least 680
Additionally, Guaranteed Rate will not contribute more than $10,000 (the actual grant percentage is dictated by the appraised value or purchase price – whichever is lower).
Borrowers must also meet census tract based income restrictions and purchase a property located in a specific area. The Freddie Mac website offers a map of eligible areas.
Home Education may or may not be required. If all borrowers are first time home buyers, then they must obtain a certificate of completion (if someone is a previous homeowner, this requirement is waived). Home Education is needed to close on certain loans.
This education strives to turn first time home buyers into informed consumers. It covers the true cost of home ownership, taxes and insurance, Home Owner’s Associations, lenders, money management, credit, the loan process, Realtors, types of homes, moving day, identify theft, refinancing, foreclosures and other related topics.
The Give 2 You program is ideal for anyone buying a home, especially those who need a bit of a financial boost in this hot housing market. It leaves you with more money to apply to closing costs (or put in the bank), it can lower interest rates (by increasing your down payment), and it allows you to eliminate your private mortgage insurance faster. Most importantly, it can open doors for those who might not be able to buy otherwise.