Cash Assistance to help you get a home mortgage loan
When you use one of NH Housing’s FLEX programs (FHA, RD or VA) you can also get cash assistance which can be used toward either down payment or closing costs. This assistance does not need to be repaid! The income limit is $115,500 (for borrowers on the loan). The minimum credit score is 620. If this sounds too good to be true, believe it anyways! The reason why this offer is made is that the borrower does agree to a higher interest rate.
NH Housing offers 2% cash assistance and 3% cash assistance, depending on your needs. The rate for the 2% assistance is lower than the rate for 3% assistance. The amount of assistance is determined by multiplying the base loan by either 2% or 3%. The base loan is the loan amount before any financeable fees are added to the loan.
When you use cash assistance, it can be used toward down payment. Sellers can help pay your closing costs but sellers can never contribute toward your down payment. For FHA loans, you normally need 3.5% down payment. NH Housing’s cash assistance can go directly toward that required down payment! When combined with a seller paid closing costs, a buyer can use the FHA/NH Housing combo to get into a home for less than 1% of the sales price!
More info can be found at NH Housing’s website: www.gonewhampshirehousing.com