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Anyone know of a nonprofit downpaymnet grant


jezior7
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I tried one and the lady was not truthful.She told me that it did not matter what type of credit I had and they pulled my credit 3 times..I did call the bbb on her.Does anyone know of any downpayment grants that they do not check credit.Please help.

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This is an important question so for part of the answer

I have posted a "sticky" note entitled:

Yes You Can Get FREE Money To Buy A Home With Grant Programs

This gives you information on one type of "free money".

None of these organizations will pull your credit.

The other type is the grants that cities/counties/states offer, then the discovery process is going to be a little harder. For instance there is a state employee program for Maryland that I just learned about that pays closing costs & etc matching your funds. You will just have to do research on the internet. None of these will pull your credit. There is never a credit score requirement - sometimes income/where you buy a home/etc, but never a credit score. The organization involved will not pull your credit.

Now, about running your credit. From what you have said you were dealing with a mortgage broker/loan officer/bank-and they were trying to get you a loan.

If you did not sign a signature authorization then contact the bureaus and tell them that an unauthorized person/company ran your credit and that you want the inquiries taken off of your report. Depending on the timing this could be hurting your chances of getting a loan or getting a loan at a decent rate/program etc.

Charles

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  • 2 weeks later...

While I understand that the "program" does not require any specific score, wouldn't the score still be a factor with the lender? For example, I've been told that with my scores, a lender would typically require me to put down between 15 and 20%. At present, I could come up with 5% and would need to rely on one of these programs for the remainder. Although I realize that one program alone would not be able to provide the remainder. . . is it possible to receive assistance from more than one? I apologize for the multiple issues in this post, but thank you in advance for any feedback.

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No, the score does not matter.

These programs are a legal way for the seller to give you part of the down payment. So the money you are getting is from the seller. The seller does not care what your scores are. It is just a legal pass through.

What you are looking for is a seller that would be willing to take 85%of their money now and the balance in 3-5 years. When you find that seller (they are out there-just sometimes hard to find)

The lender gives them 80% of the sales price

You give them 5% of the sales price.

In 3 years there is a balloon payment due the seller. At that time your credit needs to be in the 580 (if the rules don't change) to refinance the entire loan. If it is in the 620 range (and a few other requirements) then you can have the new loan with great rates.

Charles

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  • 2 weeks later...

I'm new here but would like to ask a question.

Are there non profit organizations that the seller can pay through that can be used with sub-prime loans. If there are can you please give me the names asap because I'm suppose to close at the end of the month on a sub prime loan and the seller is willing to assist with down payment through a non profit organization like ameridream but they do not work with sub prime loans.

Thanks

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Most of the sub-prime lenders I know of that do accept the DPA programs have you put at least 5% of your own money into the loan as a down payment. So it is not the programs that are the problem, but the lenders attitude towards the programs.

You could see if your lender will work with NewSong.They are a DPA that sometimes works with Subprime

Charles

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Thanks firstsource!!

I will look into NewSong today. Also do you know anything about GMFS. They are the sub prime lender that has agreed to finance me. And you are right they do want me to put 5% of my own money down but the problem is finding a DPA program that will work with them.

Thanks again

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  • 4 months later...

They should be able to check with the lender that they are placing your loan with and have that lender tell them which DPA they like to deal with.

Also, get the info from New Song and suggest that they send the info to the lender to see if it will work. New Song has a different take/system of how they work and if I remember it almost looks like nothing is actually happening.

Another note is that there are more and more lenders that seem to not care where the funds to close come from. I guess that they finally realized that there was a lot of "grey area" money being used and people were getting away with it, just not make a big deal about it.

Charles

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