Confused!!! Need help!

[MauiMan85297]

I was first looking at a DP assistance plan when I wasn't sure if I was VA eligible, once I knew I was I had my LO run the numbers for both programs and the DP assistance program had a much higher monthly payment because the fees that are charged and the interest rate was going to be 4.25% versus the 3.625 I have now.  I thought their were grants out their for the taking (which had no pay back if you stayed in the home x amount of years) but it didn't offset the high costs and higher rate.

It's only a choice if you can stomach the payment if you didn't have the required 3-3.5% down (depending on program and score) to secure the home.

[kc0039]

DPA assistance is a big PITA. Higher fees, points being charged (because lenders will not make a lot on pricing alone), very restrictive guidelines, and they control the interest rates. One DPA assistance program asks for a letter of explanation for every single cash deposit even if it's a penny! You know how frustrating that is to borrowers? They have to remember that they picked up a penny and deposited it in the bank. The only good thing about this program is that we can underwrite it and fund it and have 30 days to sell to the servicer.

[Anonymous]

So I should definitely pay the 3.5 and receive the lender credit and see if seller would also help, thank you all!