Down Payment Assitnace for a Home Purchase Can Take Several Forms

 

 In the post-Crash real estate market the once employed practice of using a "Second Mortgage" is not seen too often to be used as a Down-Payment.

The FHA Home Loan does allow options other than the borrower's own cash to supply the Down Payment in the form of a "Gift" - something that does not require repayment while the FHA Loan is in place.  As you can see in the graphic above almost a quarter of all FHA borrowers are using funds other than their own cash to come up with the down payment.

The person or entity providing the Gift Funds will almost always be required to tender a Gift Letter that asserts that the funds are a gift and not a loan.

With respect to a Government Agency, in Vancouver Washington one of the most common forms is what we call the Washington Bond. When the borrower (home buyer using this program) receives these down payment funds, no interest is accrued, and no payment is required during the life of the FHA loan. However, once the home loan is paid-off or, re-financed - Then the WA Bond funds must be repaid.

The WA Bond program is a great, almost no-cost way to obtain down payment funds for moderate to low income home buyers in Vancouver and Clark County WA.

I look forward to any questions you may have or to help you purchase your home!