The problem is that DPA second mortgage underwriting criteria is often different than the guidelines for the first mortgage. But close attention to these 2nd mortgage differences and applying these criteria to potential DPA clients FIRST is the key to making these programs work.
Additionally, there are two ways these programs are offered. Either:
When I initially started using DPA programs, I too had a bad experience. Yep, I got an approval on the first mortgage but not on the DPA 2nd mortgage and the scrambling to find funds occurred a week before closing! To make sure this never happened again, I set up a Down Payment Assistance “At a Glance” spreadsheet with common detail about DPA programs within my area. As I find out about other programs, they are added.
Answers needed for questions about each DPA program is put in the first column of the spreadsheet. Because I am a mortgage broker, I offer DPA where the 1st and 2nd mortgages are provided and underwritten by one lender, as well as 2nd mortgage DPA provided by housing counseling agencies (HCA), county SHIP programs, city programs and Community Reinvestment Act (CRA) funds that can be added to my client’s 1st mortgage. Make your own grid on an Excel spreadsheet, or download ours.
In todays housing market which favors cash buyers, having down payment assistance for clients in your tool box can make the difference on a deal.
So, what do you need help with? Contact us Today!