down payment assistance programs

[lindel]

Anyone have any experience using downpayment assistance programs in tennessee?

[lindel]

maybe i should say whay has been your experiences with down payment assistance programs?

[cartwrna]

I've seen people that are on waiting lists due to funds running out, as well as waiting for it to actually fund prolonging their closing wait time. They also raise your interest rates while using these programs, so in reality you don't really save that money in the end.

[lindel]

Thanks a lot. I was just considering them just in case.

[StartingOver10]

Take a look at the dpa programs in your area and then check out usda or fha programs and compare the two.  My experience (with my clients) for dpa programs is not that positive because the programs here frequently run out of funds quickly after the new fiscal year. Plus the closing times are very long.  The criteria is extremely difficult to meet. The income requirement is also difficult - one dollar over the max allowed income and you are turned down, but they take months to tell you that you don't qualifyl All in all the entire process is not well organized. The county doesn't care about the actual contract dates at all, they move at their own pace so you end up with upset buyers and sellers. Here they limit the location where you can buy to certain zip codes too. By the way, when they run out of funding there is no more $$ left for homes to close until the following fiscal year. 

The best way to compare is to check out your particular programs and run the numbers for yourself to see if there is any benefit to you..  

[lindel]

thanks for responding! i will check it out

[Lemmus]

...I cant speak to Tenn dpa programs but here in FL it depends on which program you get into as to what your experience may be

...the SHIP program is a state funded but local govt run program that works just as SO10 described it above ...unless you're buying in an urban redevelopment area, I'd avoid it like the plague if you can

...otoh, the Florida Housing First Time Buyer dpa program has been, ime, exceptional ...its well funded by the state, run by local program certified realtors and LOs who know what they're doing and have been very customer service oriented ...I know because I'm closing tomorrow on a home purchased through the program.

...it provided a $7500 interest free 2nd mortgage that paid almost all of my dp/closing/prepaids ...with the exception of the $1k deposit, $325 inspection fee, and $450 appraisal fee, the only out of pocket expense I will have is the $259 I need to close ...that's less than $2k total out of pocket to close on a great home on a half acre in a gated community with golf course and marina in south florida that's in excellent condition ...the loan rate is currently 4.5% for everyone regardless of credit as long as you're above the 640 minimum ...the income restrictions are significantly higher than either the SHIP program or the USDA Direct maximums for the county I'm buying in ...I'm on SSA and private pension and easily fell within the max (I met neither SHIP or USDA Direct maxes) ...my PITI+MI is well less than half the going rate here for a similar sized apartment w/o the amenities ...it required a 45 day closing but the LO handled everything, we're closing early, and I never dealt with anyone but her and my realtor ...I used a 5% conventional loan but both FHA and USDA were available ...I'm very happy with the program

...as always, ymmv ...hth 

[lindel]

thanks foe sharing