Don’t discriminate when it comes to down payments

coinsMaybe your real estate agent suggested you reject an offer where the buyer is using downpayment assistance in favor of an offer with no down payment assistance.

There isn’t any rational reason to reject an offer based on that alone. Until recently a special box had to be checked on the purchase agreement indicating that the buyer is using down payment assistance. Home buyers using cash or maybe a gift from mom and dad were not required to mention it on the purchase agreement.

That has finally been changed. It is now possible to buy a house using downpayment assistance funds without having to worry about downpayment assistance discrimination.

There are downpayment assistance programs that first-time home buyers can and should take advantage of. Generally, they run out of funds before we run out of year.

Here is a link to find out more about downpayment assistance programs.

The city of St. Paul has spent around 1.5 million dollars on down payment assistance loans and grants.  The city also has rehab/fix-up loans and grants. Available to current home owners.

The City of Saint Paul also offers homeowners no-interest deferred loans for basic and emergency improvements. Qualified homeowners can receive up to $40,000 and homeowners eligible for the Inheritance Fund layers can receive up to $120,000. Once funding is secured, the City of Saint Paul disburses the payments to the contractors when the project is complete. Applications are open year-round until funding is no longer available.

The Inheritance Fund addresses lost generational wealth and lost community wealth separately. Qualifying descendants can receive up to $100,000 in Downpayment assistance to purchase a home anywhere in the city to address lost generational wealth. If they further choose to purchase their home within the boundaries of historic Rondo, they may receive an additional $10,000 in assistance to recognize the lost community wealth being addressed with the homebuyer’s investment in the historic Rondo community.

Sellers do not need to fear these programs. Buyers will have a pre-approval letter from a lender just like any other buyer should have.

Over the years I have worked with several buyers who have successfully purchased a home using downpayment assistance.

Print Friendly, PDF & Email