If you want to buy a home in Gwinnett County and the down payment is standing in your way, read on and learn about the Gwinnett County Homestretch down payment assistance program. The Gwinnett Homestretch program gives you $7,500 towards the purchase of your home, which can be used towards your down payment and/or closing costs. Of course, every one wants to know if they’re eligible; what’s required – basically, what’s the catch?
Well, there are some “catches”, but they’re more than worth it when you find out what they are. We’ve included this handy-dandy info graphic below to make it easy to see just what’s required, just click the image at the end of this article for a full view.
So let’s See What the details are:
It is in the form of a loan, But there are no payments, and no interest charges for six years as long as you occupy the property as your primary residence. At the end of six years, if you do still occupy the property as your primary residence, the loan is forgiven. This means you will not pay any money back, you won’t owe anything, and later on after six years, If you decide to sell this property, you don’t have to pay this loan back. Now I need to stress a key point – you must live in the home; you must be there at least six years. It bears repeating, If you don’t live there six years, you will have to pay it back. It’s good to note, though, if you’re in a position where you have to move before 6 years, the principal balance begins a 20% reduction each year after the second year. So if you’ve lived in the home three years, you will have two 20% reductions on the $7,500, so that your balance will not be at 100% of $7,500 but it will be 40% lower. The Program Is For 1st Time Home Buyers:
– don’t get discouraged if you’ve owned a home before. A First-time homebuyer is defined as someone that has not owned a home within the past three years – or – as someone who has never owned a home. If you fall into this category, you’re well on your way. You Must Have At Least One Of Your Three Credit Scores At 640 Or Higher.
No exceptions. If none of your three credit scores is above 639, You do not qualify.Your Debt vs. Your Income Cannot Be More Than 43%. That means for every $1000 in income you earn, you can have no more than $430 in expenses. This will include your new mortgage payment, and any other bills you have.There Are Price Limits. If you’re buying a new construction home, your maximum price is $199,500. If you’re buying an existing home (resale), your maximum purchase price is $161,500.You Must Attend A Homebuyers Counseling Class from a HUD approved counseling agency.There Is An Application Process. The application consists of a few things including; your purchase contract; your pre-approval loan letter; your credit report; your home buyer class certificate. There are additional items as well that are included in a checklist.The Home You’re Purchasing Must Pass Homestretch’s Program Inspection. What this means is, the Homestretch program does not work with any form of escrow/repair–type loan, and you can purchase a short sale, but you can only apply for the homestretch program once you have a full short sale approval from the seller’s bank – AND the short sale home must also pass Homestretch’s inspection.There Are Income Limits. See infographic to your right for details.
We’d be happy to help you with your home buying needs. We help you find a lender to meet your needs, find the right home for you, help with the paperwork for the down payment assistance, and all other aspects of the home buying process.
Get Started Today.
Call Andrea at (678) 608-9800