Ocean City Today

New assistance program for down payments on loans

Real Estate Report
By Lauren Bunting | Apr 26, 2018

(April 27, 2018) A new down payment assistance program for FHA loans, FHA Advantage, is available.

This down payment assistance comes by way of a completely forgivable grant equaling 2 percent of the purchase price of a home, which makes the total down payment needed from the FHA borrower just 1.5 percent.

There are three ways that a borrower can be eligible for the program.

• First-time homebuyer

• Current, retired, volunteer or nonpaid:

• First responder (police officer, firefighter, public safety officer, paramedic, EMT)

• Educator

• Medical personnel (doctor, nurse, phlebotomist, pharmacist, Red Cross worker, or similar)

• Civil servant

• Military personnel

• If not one of the above, then the total borrower’s income must be equal or less than 140 percent of median area income. (The current median income for Worcester County is $56,773.)

Buyers using the FHA Advantage down payment assistance program may still request a seller to pay up to 6 percent toward the buyer’s closing costs.

This program is offered by approved governmental entities, and can be combined with either FHA 203(b) loans or any FHA renovation loans.

One local lender who is offering this program is Professional Mortgage Services, Inc.

“This is such a great program that can help more buyers get their foot in the door with less money down,” President Brett Wolf said. “Also, the 2 percent forgivable grant can be coupled with Professional Mortgage Services contribution of $750 for local heroes.”

— Lauren Bunting is an Associate Broker with Bunting Realty, Inc. in Berlin.

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