DOWN PAYMENT ASSISTANCE
IS DOWN PAYMENT ASSISTANCE AVAILABLE?
You may have heard of Cleveland homebuyers receiving down payment assistance. There is no across-the-board financial assistance available for City of Cleveland homebuyers, but from time to time, financial assistance programs may become available, usually with certain conditions in addition to a lender's regular criteria for getting a mortgage loan.
CAN A DOWN PAYMENT ASSISTANCE PROGRAM HELP ME?
|That depends on||1)whether there's a program that fits your particular situation, and|
|2)whether it has funds available when you purchase your home.|
Application for a down payment assistance program is usually made at or before your mortgage application. It generally cannot be accessed later, i.e. if you've already made a mortgage application but need more cash for down payment or closing costs.
Down payment assistance plans are meant to supplement, not replace, your own savings. You'll still need to use some funds from your own savings toward the upfront costs. Some down payment assistance plans also require that your mortgage be from a participating lender.
WHAT ARE SOME SOURCES OF DOWN PAYMENT ASSISTANCE FOR CITY OF CLEVELAND HOMEBUYERS?
Specific Mortgage Lenders: Some lenders may offer a plan of down payment assistance. Others may have a mortgage product with upfront costs reduced from the lender's normal requirements. These are described in the special mortgage programs section of Living in Cleveland Center's Cleveland Mortgage Bulletin, or check with your lender.
Specific Houses: new construction housing developments in City of Cleveland neighborhoods may sometimes offer down payment assistance. Local neighborhood non-profit development corporations that sell homes they've rehabbed may also have a down payment assistance component. If such assistance is available, the neighborhood group or developer will have information on the assistance program; the assistance is for those specific houses only.
Neighborhood Housing Services (NHS): Low-interest loans for down payment assistance are available to participants in the Homebuyers' Club Mortgage Program. Call (216) 361-0516 for information.
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