Housing Loan Assistance Options and Government Programs

There are several government programs that offer housing loan assistance to eligible individuals. The Federal Housing Administration (FHA) provides mortgage insurance to help low-income borrowers qualify for loans.

The FHA's Good Neighbor Next Door program offers a 50% discount on the list price of a home to law enforcement officers, teachers, firefighters, and emergency medical technicians who commit to living in the home for at least 36 months.

The Department of Veterans Affairs (VA) offers zero-down mortgages to eligible veterans, service members, and surviving spouses. This means they can purchase a home without paying a down payment.

The VA also offers a loan guaranty benefit, which allows veterans to purchase a home with a lower interest rate and fewer fees.

To help you navigate your down payment assistance options, we've compiled a list of resources you can share with your borrowers.

Any individual who's related to the borrower by blood, marriage, domestic partnership, adoption, or legal guardianship is considered a relative, which includes relatives, former relatives, godparents, spouses, individuals engaged to marry the borrower, children, or other dependents.

For more details on relatives, see the Consumer Overview section of the Down Payment Assistance Tool in the Selling Guide section B3-4.3-04.

Low Down Payment Mortgages can be a game-changer for first-time homebuyers. With a down payment as low as 3%, you can start building equity in a home sooner.

HomeReady Mortgage is a great option, offering innovative income flexibilities to help you qualify for a mortgage. This can be a big help for those with variable income or credit issues.

You can also consider HFA Preferred, which pairs the features of HomeReady Mortgage with local housing finance agencies (HFAs) to serve more low- to moderate-income borrowers.

Here are some key benefits of Low Down Payment Mortgages:

Some programs, like MassHousing, offer even more assistance. With MassHousing, you can get up to $30,000 in down payment assistance. This can be a huge help in saving for a down payment.

NACA's Homebuyer Purchase Program offers a solution to address major barriers in the housing market, including limited savings, unaffordable terms, restrictive underwriting, and racism and biases. The program provides a Best in America mortgage with extraordinary terms, including no down payment, no closing costs, no fees, no mortgage insurance, and a below market fixed rate.

The NACA Mortgage can be used for a wide range of property types, including single-family homes, condominiums, multi-family properties, mixed-use properties, and co-ops. Homebuyers can also access funds for renovation through the Homebuyer Purchase & Renovation Program, which provides a rehab escrow to revitalize properties and make necessary repairs after closing.

Here are some key benefits of NACA's Homebuyer Assistance programs:

Additionally, NACA's One-Dollar Homeownership Program offers community residents the opportunity to purchase a vacant house or lot from the city for only one dollar, with financing available for any necessary repairs or renovations through the Best in America Mortgage.

Counseling is a crucial part of the homebuying process, and NACA is one of the largest and most effective HUD-approved counseling organizations in America, providing between 20% and 30% of the total housing counseling.

NACA's comprehensive housing and financial counseling is included in all of their homeownership programs, making them a trusted resource for both homebuyers and homeowners.

NACA's counseling services are comprehensive and documented, providing homebuyers and homeowners with the support they need to make informed decisions about their finances and housing.

NACA continues to provide homeowners with assistance from trusted sources, helping them work with lenders and servicers to obtain affordable solutions.

NACA's role is to advocate for the homeowner, working to keep them in their home with an affordable mortgage payment.

The Homebuyer Purchase Program is a game-changer for those looking to purchase a home. NACA's Best in America mortgage offers an array of benefits, including no down payment, no closing costs, no fees, and no mortgage insurance.

The program is committed to addressing the major barriers in the housing market to affordable homeownership, including limited savings, unaffordable terms, restrictive underwriting, and racism and biases. NACA has secured $20 billion in funding for this mortgage, with $15 billion from Bank of America.

Homebuyers can access this mortgage for a wide range of property types, including single-family homes, condominiums, multi-family properties, mixed-use properties, and co-ops. The types of transactions that can be financed include pre-existing properties, new construction, manufactured/mobile homes, and modular homes.

Here are the extraordinary terms of the NACA Mortgage:

The estimated purchase price of NACA Homes, which are primarily modular new construction, ranges from $110,000 to $150,000, with a mortgage payment from $750 to $1,100 depending on property structure, current NACA below market interest rate, land cost, site preparation, location, and transportation.

The government offers programs that can help make homeownership more accessible and affordable. The HOMEBUYER PURCHASE & RENOVATION PROGRAM provides homebuyers with funds for repairs and renovations after closing, and homeowners don't have to make mortgage payments during the first six months.

This program allows homebuyers to compete with cash buyers and investors, and NACA's HAND department offers ongoing assistance throughout the renovation process. They educate and work with homebuyers to create a scope of work and rehab budget, and identify and estimate the cost for required repairs and renovations.

Homebuyers can also combine their Section 8 or Housing Choice Voucher with NACA's Best in America Mortgage through the HOT-PHA program. This program enables homebuyers to own their home mortgage debt-free in 20 years or less, ensuring long-term financial independence.

The Payment Standard approved by the PHA, which is currently paid to the landlord, goes to the lender to pay the homebuyer's monthly mortgage payment. This incurs no additional cost to the housing authority or government.

Here are some key benefits of these government programs:

MassHousing Programs offer a range of benefits to homebuyers in Massachusetts. You can access affordable interest rates with MassHousing Mortgage loans, fixed for the life of the loan. No hidden fees or surprises come with these loans.

MassHousing provides Conventional loans and FHA financing options. The type of property and other factors determine which mortgage option you may be eligible for. You'll have a long-term partner with MassHousing, so you can easily reach out with questions or concerns about your mortgage.

More flexible income and credit score requirements make MassHousing Mortgages accessible to a wider range of homebuyers. You can check if a MassHousing Mortgage is right for you.

Here are some key features of MassHousing Mortgage loans:

MassHousing offers down payment assistance, but it's not for everyone. If you're unsure if MassHousing is right for you, you can learn more about their programs and eligibility.