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Down Payment Assistance Can Bridge the Gap

fred3clark

The Affordable Housing Trust Fund can provide up to $25,000 for income qualified buyers as a down payment loan. For many buyers this can make the difference in being able to get into their own home. The program is structured to bridge the gap. Many people may be surprised to find that the mortgage is similar to the rent that they have been paying. While mortgage interest rates have creeped up recently, there are several lower interest programs for first time buyers- more on these later. The down payment assistance is ideal for a house up to $250,000+/- and the loan of $25,000 qualifies as 10% opening up mortgage options. For two income earners the income limit is $84,560. The Affordable Housing Trust Fund has made four down payment loans in the last year. All of the house sold in the $250,000 range. While this program is just for Great Barrington, there are similar programs sponsored by other housing trusts in other area towns. The down payment is a 0% interest loan that includes a lien requiring the loan to be repaid when the house is sold. The advantage to the buyer is they only repay the repay the original amount without any increase many years from now. Often the amount is viewed as equity and will reduce or eliminate PMI. Home ownership is the backbone of middle class wealth accumulation. For the community, it helps new buyers to get into a house. Because it is a loan there is a embedded fund that can funnel an ongoing program as houses are sold years from now. The down payment assistance loan is one of the most effective programs that the Affordable Housing Trust Fund provides.


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