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Down Payment Assistance (DPA) Options Have Never Been More Plentiful For Mortgage Brokers
Contributors • Apr 02, 2021
See How DownpaymentResource.com Helps Loan Originators And Realtors Assist Clients Who Need DPA
One of the most needed resources for clients who wish to purchase a home is down payment assistance. But in 2020 when some federal and state funds were diverted to assist homeowners and renters to stay in homes during the height of the pandemic, the emergence of wholesale and some proprietary DPA programs came to the forefront. This not only expanded the availability of needed DPA funds but also provided awareness of the variety of programs with a slight advantage to mortgage brokers who can utilize wholesale DPA in addition to city, county SHIP, and most state programs.
Homebuyers who need closing costs assistance from the seller often compete with cash buyers and flippers who don’t. Any advantage for the homebuyer is sought and down payment assistance can provide that advantage by providing funds needed for down payment and/or closing costs through a DPA source rather than seller assistance.
Down Payment Assistance Resources
Down payment assistance has been available to consumers for a long time, but the variety of programs available now has not. For loan originators that wish to use as many of these sources as possible, , Downpaymentresource.com offers this variety state by state. The site is included on , Stellar MLS platforms for real estate agents to sift through for available DPA to refer to clients.
Loan originators can generate leads from this source as well (for a fee) on the , Down Payment Connect side with a personal landing page and website link promoting that the loan originator can provide DPA programs for interested clients. Customized selection of which programs a loan originator can provide that will show up for qualified clients is included.
Matching The 1st Mortgage To The Second DPA Loan
The biggest problem loan originators have with down payment assistance is matching the DPA guidelines with the 1st mortgage product. Many originators have had the experience where a client fits all of the criteria for the first mortgage, but the loan is denied for criteria not met with the down payment program. The best benefit of all (to me!) with , Down Payment Connect is the detailed description for ALL down payment programs on their own page, including who to contact and an updated status on funds availability at the top of each program description.
Blended Programs
Some DPA programs are offered by resources that provide a blended 1st and 2nd mortgage program so that client qualification criterion is easily matched. , Land Home Financial Services , a national wholesaler that provides a blend of the 1st and 2nd mortgage, offers an easy to follow yet comprehensive , DPA Program Comparison Matrix for the FHA and two conventional programs that their company offers.
DPA 2nd Mortgages
And, even if the DPA program that is offered is only a second mortgage that needs to be matched with a first mortgage, the Down Payment Connect DPA Directory provides a link to participating provider lender websites to check criteria.
Next Blog
The difference on how to input DPA grants and 2nd mortgages in the NEW URLA and Fannie Mae DO/DU correctly coming up!
Contact Clients2Homeowners today to learn more about DPA loan options for every type of buyer.
Down Payment Connect is already being used by MLOs and Realtors. Now it's available to HUD Counselors through HomePrep! Down payment assistance is quickly rising to the top need for clients wishing to purchase a home. Down Payment Connect , the back-end data provider for the parent Downpaymentresource.com , houses every down payment assistance program in the US and provides extremely detailed information laid out in a consistent format for each DPA program in their system. Throughout the last two years, Downpaymentresource.com administrators have worked with MLO’s and the HomePrep developers to add nearly all wholesale down payment assistance programs to their platform and they didn't stop there! Extensive filters that allow for selection of specific client needs such as type (ie. SFR, manufactured homes, condos, multi-family, ADU’s), uses like renovation, above AMI income levels, non-1st time homebuyers are just a few of the filters you will find along with stand alone 2nd mortgages, combined 1st and 2nd mortgages and grants. DownpaymentResource.com is also in many MLS systems across the US and provides limited directory information and a free landing page for realtors to promote that they use DPA. Both MLO’s and realtors can subscribe to Down Payment Connect to get more of the extensive directory and back-end tools. Now, through HomePrep, HUD counselors can also use the Down Payment Connect system to filter trhough DPA programs that clients are qualified for, and can even provide wholesale programs when working with an independent loan originator (often called a mortgage broker)! Through HomePrep, HUD counselors are now able to provide MLO’s and clients with the DPA programs that they have found the client is eligible for.
If you have FFEL Student Loans, Take Action Before April 30th!
Three great tools that mortgage loan originators (MLO) can use to assist clients who need help with credit, down payment assistance and student loan repayment services have been used, fine-tuned and are already in use with individual MLO’s. These tools combined with the Freddie Mac HomeCoach automated system along with budgeting help and Homebuyer Education are all integrated in the HomePrep online platform that connects MLO’s with clients who have challenges to HUD counselors that get them mortgage ready.
Pam Marron, NMLS# 246438
Innovative Mortgage Services, Inc. NMLS# 250769
