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To buy a home, and to receive down
payment / closing cost assistance, you will need to
qualify for an affordable first mortgage loan from a bank or other mortgage lender.
The down payment / closing cost
assistance is provided in conjunction with two first mortgage lending programs;
the Gap Lender Program or our Consortium Lender
Program.
Very Low, Low and Moderate income
households can obtain an affordable first mortgage loan through our Gap Lender
Program. Our Gap Program is familiar to most local lenders and all lenders
are invited to participate.
Lenders should click
on this link for more information.
Conventional mortgages are
generally acceptable and many new homebuyers choose an FHA
mortgage that is insured through the federal government's Department of Housing
and Urban Development (HUD). FHA mortgages are affordable to low and
moderate income homebuyers and generally allow you to finance up to 97% of the
home purchase price and make a down payment of 3%.
Keystone can provide you with the
needed down payment and even more!
Current program assistance amounts are posted on our
Available Funds page.
FHA buyers generally can expect to pay 2-4% of the home's purchase price as
closing costs. You may also be eligible to receive up to $2,000 in
closing cost assistance to reduce your expenses.
To find an FHA lender, contact your
bank or financial institution or check the
yellow pages in your phone book. You can also visit the US Dept. of HUD
website at
http://www.hud.gov/initiatives/homeownership/index.cfm to obtain more
information and a list of participating lenders in your area. Tell your
lender you want to participate in Keystone's down payment assistance programs.
If your lender is not already familiar with our programs, ask them to call our
office at 863-682-1025.
When talking to a lender, make sure your first mortgage loan will meet the
following basic requirements:
- The first mortgage loan must be affordable. Affordable is defined as a
fixed interest rate at not more than 1% above the current 60-day FNMA par
pricing.
- The first mortgage loan may not require unreasonable or unnecessary
closing costs paid by the buyer.
- Non-qualifying assumables, adjustables, seller financing, or mortgages
with balloons or pre-payment penalties are not allowed.
As an alternative to the Gap Lender
Program,
low and very low income households
can obtain an affordable first mortgage loan directly through Keystone.
We work with a consortium of lenders and will process a first mortgage loan for
you. To be pre-qualified for the Consortium Lender Program, call Keystone
at 863-682-1025, ext. 7.
Regardless of which first mortgage
lending program you choose, you will probably need to meet some general
criteria established by the lender to obtain a first mortgage loan. This
criteria will vary somewhat from lender to lender but basically, you will need
to demonstrate that you have:
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A current steady and stable source of
income, and a history of stable income.
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A reasonably good credit history.
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The ability to afford the mortgage
payment.
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A reasonable level of other debt.
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A small amount of your own savings.
Plan to attend our
Homebuyer Education Class
anyway, even if you do not think that you are qualified to obtain a first
mortgage loan due to credit problems or other situations.
Many of the clients that have been
assisted by Keystone have experienced difficulties such as problems with credit.
We have worked with some clients for a period of 2-3 years after they have
attended a class before they purchased a home.
Assistance amounts are based on
your household income level, and the location of the property being purchased.
For more information view our
Assistance Amounts
page.
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View and Print our
Down Payment Assistance Programs Brochure
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