Down Payment Assistance

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A down payment assistance program is money allocated to the buyer through an organization or a mortgage lender.  Often they are grants that are established within a specific community but they can be established by any entity.

The best way to find out if you qualify for a community grant or down payment assistance is to either reach out to your mortgage loan originator or to contact the entity that is offering the DPA.  They will walk you through the steps of qualifying for the grant/DPA.

Currently Fannie Mae is offering an SPCP grant for first time homebuyers.  This is a great program that gives the buyer $5,000 toward their down payment.  They will also cover up to $500 of the appraisal cost.  The buyer needs to reside in an eligible area but can be purchasing a home anywhere.  In Michigan, most of Detroit and portions of the surrounding suburbs are eligible.  You MUST be a first time homebuyer and be utilizing a Conventional mortgage.  Outside of that it's a fairly straight forward program.