DPA and Matching?

[buskels]

I am putting in a bid on a house tomorrow. Mortgage will be FHA and I am in Georgia. The original intention was to get the down payment assistance (which I know is ending soon). However, the house I am looking at is a foreclosure and the seller has a comment that they will not participate in any DPA programs. This house needs a bit of work so I would like to keep as much funds available as possible. I had heard of a matching program that would give up to $10,000. If I put in $2,000, they would put in $10 and I would have $12,000 for down payment and closing costs. I think that one had income limits but not sure as I don't remember the name to research.

Does anyone know, or have you heard of, any DPA programs such as the one above - or others, where the seller does not have to participate? I have the funds for down-payment but as I said, would like to keep as much back as possible.

I will be talking to person writing up mortgage tomorrow but really looking to find out more tonight.

Any advice greatly appreciated.

Stephanie

[Anonymous]

You need to get the seller to agree to the DPA.

As far as DPA programs there are hundreds.  But, just because it is not a seller funded DPA does not mean that the seller does not have to agree to it.  there are more restrictions, more people in the loop to foul up the funding, more paperwork, more time, and quite often changes in the program midstream due to regulations, funding, or whatever.  Alot of banks (REO's in particular) prefer not to use them as they would rather take a lower cash offer than waste the time only for it to fall apart.  Basicly, unless you are going to off a full price bid to compensate them for the added risk/time they will usually go with another offer if they have one. 

Also, alot of the DPA programs have stricter DTI, FICO, and general credit situations.  For example, one where I live you must have a credit score 0f 620, be at 80% median income, have no negative history at all for 24 months, be a first time home buyer, be under 30% DTI for the mortgage itself, and the house can not have any "luxury" upgrades including a pool, spa, jet tub, etc.  These stipulations are set by the provider and would overrule looser restrictions like on an FHA loan, etc.  Also, in some cases, they are only available on conventional financing, not FHA products.  Again, do the research on the particular program you want. 

That said, usually if the seller stipulates no DPA, they are refering to any DPA.  If they stipulate no seller funded DPA then that is what they will not use.  It still can not hurt to put an offer in.  If not one else is bidding or showing any interest then they might make an exception.  Alot of times, they put that in as a blanket statement on all of their listings and then the ones that don;t move they will "negotiate" this.

[DallasLoanGuy]

most likely, the seller doesnt have much say about dpa..... because the bank will have to approve the sale. i am assuming that they are upside down and this will be a short sell. i know, lots of assumptions.... but this is what it smells like to me.

matching? ask a local realtor. those deals are always local.... not national.

[Anonymous]

by seller I was refering to whoever makes the ultimate decision. 

We are about 2 weeks from closing on a deal with a local DPA program with a lender who said no to DPA.  They falt refused 2 offers of the 5 they recieved because they were a combination of lowball and DPA.  They told us the only reason the went with us over the last 2 offers is that we were upfront about the DPA money and that we put in a competetive bid.  In the end, the bank was willing to go through the hassle to get the extra 5K (out 0f 320K) that we were offering because we were upfront and because we were realistic in bidding knowing we had to make a strong offer using a DPA when the lender was normally against them.

[DallasLoanGuy]

---

mickie08 wrote:

by seller I was refering to whoever makes the ultimate decision. 

We are about 2 weeks from closing on a deal with a local DPA program with a lender who said no to DPA.  They falt refused 2 offers of the 5 they recieved because they were a combination of lowball and DPA.  They told us the only reason the went with us over the last 2 offers is that we were upfront about the DPA money and that we put in a competetive bid.  In the end, the bank was willing to go through the hassle to get the extra 5K (out 0f 320K) that we were offering because we were upfront and because we were realistic in bidding knowing we had to make a strong offer using a DPA when the lender was normally against them.

---

i have only done one deal with dpa when the seller was a bank. i was shocked that they agreed to it. it is rare.

[Anonymous]

I think when using DPA you just have to be realistic enough to know you just can't lowball too much.  Our final offer was 1K over asking price with the seller paying all closing costs and about 7K in repairs or so.  In the end, they are clearing about 10K under asking price prior to paying back taxes and realtors fees.

[buskels]

This particular house is actually already foreclosed on - not a short sale at all.  The seller has this standard contract for all properties indicating they will not do any DPA at all or concesssions and increasing bid amount to cover that is expressly mentioned.  This house is priced well, even considering repairs, and my thought was to give net of full-asking with the DPA portion over.  It was a thought.  I have the funds but would so much rather have some in reserve for the repairs.  Oh well.  If anyone thinks of anything in next few days, let me know.  According to my lender, contract HAS to be submitted by Friday to get DPA.

Thank you,

Stephanie

[Anonymous]

It can't hurt to offer.  If it is a non seller funded DPA you are in better shape. 

[Anonymous]

---

buskels wrote:
I am putting in a bid on a house tomorrow. Mortgage will be FHA and I am in Georgia. The original intention was to get the down payment assistance (which I know is ending soon). However, the house I am looking at is a foreclosure and the seller has a comment that they will not participate in any DPA programs. This house needs a bit of work so I would like to keep as much funds available as possible. I had heard of a matching program that would give up to $10,000. If I put in $2,000, they would put in $10 and I would have $12,000 for down payment and closing costs. I think that one had income limits but not sure as I don't remember the name to research.

Does anyone know, or have you heard of, any DPA programs such as the one above - or others, where the seller does not have to participate? I have the funds for down-payment but as I said, would like to keep as much back as possible.

I will be talking to person writing up mortgage tomorrow but really looking to find out more tonight.

Any advice greatly appreciated.

Stephanie

---

I'm in a match savings program myself in NY.  While I'm not sure if all match programs are run the same.  The one I'm in is through a bank.  They match 4.00 for every 1.00 I save for a max of 7,500 dpa grant from them.  The catch is I have to get the loan through them and I have to save the amount for a minimum of 10 month.  You cant show up and say oh I got 5000 to put down please give me the 7500.  You have to show you can save the funds.  They tell you what you have to deposit every month, your not allowed to miss a month then double up the next