When Your INCOME IS TOO HIGH for Downpayment Assistance

Hi, I'm Jason Pitarra and I'm here to share a little bit of information and challenges that we've been able to help customers overcome to get into their dream home.

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So one of the biggest challenges for first-time homebuyers is coming up with the down payment.

In a perfect world, you're in a USDA Market where in the rural areas you automatically qualify for zero down. In another perfect world, you're a veteran and the VA guarantees your down payment or the guarantee on the loan to avoid a down payment. 

Unfortunately, that's just not the case for everyone involved. So most homebuyers end up having to bring somewhere between 3 and 5% which are actually as high as 7% of the purchase price.

So that's usually one of our biggest challenges. So if eligible, there are many down payment assistance programs available through city and state programs.

These programs typically come with conditions and the most common condition being income limitations. This means you make too much money and you don't qualify for the normal down payment assistance.

So the solution, if you can't qualify for normal options, you either get gift funds from a relative. Not all of us have a rich uncle.

You could sell a car or a boat, and in most situations most of us don't have an extra car boat to sell; or you could pull money out of your retirement.

What I would like to tell you about is a family that was in a very, very similar situation that we just recently helped.

They didn't have the down payment saved, they made plenty of income. As a matter of fact, they made too much money to qualify for the standard down payment assistance options.

So credit was good luckily after doing this for 18 years we have plenty of access to unique programs.

One of these unique programs does not have income limitations. How this works is you qualify for an FHA First loan: which typically for FHA Is going to be 3.5% down.

And then we got a second loan that gives you 5%: 3.5 to go towards the down payment 1.5% to go towards closing costs.

At the end of the day we ended up getting the client to 5.5%, 3.5% towards the down payment, the other 1.5 towards the closing costs and they ended up coming up with less than 2% of the purchase price as a whole total to buy their new home.

If this sounds like a story that relates to you, you have good credit, you have a good job history, you just don't have enough money set aside for down payment, listen, we understand life happens.

It isn't always easy to save a big chunk; and if you do you might want to keep it for a rainy day and not use it all for a purchase so you can have that reserve for your family.

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If you have any questions on how this works, how any of the other programs work, please click the link below. Reach out to myself, my team. This program is available in most states. Contact me for more information.