FHA Down payment Assistance Program – Neighborhood Gold
The Neighborhood Gold Down Payment Assistance Program provides the money to buy a house with no down payment or closing costs incurred. This program is not restricted to first time home buyers alone. Any potential FHA lender who qualifies for a loan can apply. Borrowers receive between 3% and 10% of the down payment and closing costs depending on the amount agreed to by the seller.
A side benefit of Neighborhood Gold Loans is that the borrower receives free entry into the Involuntary Unemployment Mortgage Program for the first year. This program acts like an insurance coverage on the mortgage should the borrower lose their job due to lockout, strike, layoffs, business failure or bankruptcy, monthly payments of up to $1,500 for a period of up to 12 months.
Neighbohood Gold DPA is a 501 (c) (3) non profit program that assures cash grants to the borrower on closing the transaction. Such borrower is required to qualify for FHA lending as well as involve a lender that agrees to the process.
A 1% fee not exceeding $1,000 is charged for this program. Based on agreement the fee may be deducted by the seller from the cash grant and should be negotiated.
Learn more about FHA lending and Texas FHA Loan Programs.
