@idk41 wrote:
I am a first time homebuyer and there is grant money in my state that I qualify for. However, when I called Capital One they stated they do not accept funds from the program. Are there any online mortgage companies that accept grants from the states for closing cost/down payment?
I have found that these grant programs have a few lenders they work with and it is best to use those lenders. You can go on the grant program website to see which lenders are affliated with the program. Or you can contact the grant program admin to find out who they use.
On the other hand, I have also found out that these programs are not necessarily good for you. Some offer great terms. Other programs are so convoluted and expensive that it isn't worth the time and effort. You end up spending much more than if you received a regular mortgage from FHA rather than a grant. Read the terms carefully. If there is an income limit, that limit is set in stone: one dollar over and you don't qualify so don't even start. Many of these programs use household income (HH) and not just the borrowers income so make sure you double check all of your figures. Don't rely on admin to tell you the terms. Read the terms and conditons for yourself first, then ask questions of the program administrator.
Some of these programs are limited to certain zip codes. Some have very low ratios allowed. Check all the terms. As a Realtor I had to stop referring the programs we have available in my area because they really are harmful to the buyers (very high closing costs and higher interest rate). I have seen good programs in other areas so check yours first before you apply.
