NHF limits Grant Amounts based on Credit Scores

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2013-03-07_0746The National Home Buyers Fund (NHF) recently made changes as to how much grant funds a home buyer may be eligible for.  The grant funds are available to help qualified home buyers with funds for closing cost and down payment. Unlike other forms of down payment assistance, grant funds are not repaid by the home buyer – it’s kind of like a gift from a rich uncle or aunt that you didn’t know you had. 🙂  You can learn more about the NHF Grant program by clicking here.

The amount of the grant varies depending on the loan program and, effective December 1, 2015, the interest rate for the first mortgage and the amount of the grant will be limited by the home buyers credit score.

∙ Interest Rate / 2.00% grant (FHA FICO 640-659)  
∙ Interest Rate / 3.00% grant (FHA FICO 640-659)  
∙ Interest Rate / 4.00% grant (FHA FICO 640-659)

∙ Interest Rate / 0.00% grant (FHA FICO ≥ 660, VA, USDA)
∙ Interest Rate / 3.00% grant (FHA FICO ≥ 660, VA, USDA)
∙ Interest Rate / 4.00% grant (FHA ≥ 660, VA, USDA)
∙ Interest Rate / 5.00% grant (FHA ≥ 660, VA)

The amount of the grant funds is based on the loan amount, not the sales price. So in order to receive grant funds in the amount of 5% of your loan amount, you need to have credit scores of 660 or higher. If your credit scores are 640 to 659, the maximum available grant is 4% of the loan amount.

If you are considering buying a home located anywhere in  Washington state, please contact me. I’m happy to work with you as your Loan Officer.

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