Buying a home, whether for the first time or as a primary residence, can be an exciting yet daunting experience, especially for those facing income restrictions. Fortunately, there are incredible programs designed to aid buyers in making their dream of homeownership a reality. Two standout programs from District Lending are Purchase Plus and Welcome Home
RateBreak.
The Advantages of Purchase Plus
The Purchase Plus program provides up to $5,250 in lender credits to be used towards your down payment and closing costs. This is a significant advantage for buyers who often struggle to gather the necessary funds, allowing them to overcome financial hurdles and achieve homeownership.
Breaking Down the Benefits:
- Affordability: Purchase Plus lowers out-of-pocket expenses, making it easier for buyers to secure their new home.
- Flexibility: The program allows combining lender credits with gifts and other acceptable funds, providing added financial support.
- Building Equity: With the stability of homeownership, buyers can avoid unpredictable rent increases and start building equity for the future.
Welcome Home RateBreak: Lowering Your Loan Rate
The Welcome Home RateBreak program offers substantial savings by reducing your mortgage rate by 2% in the first year and 1% in the second year when choosing a HomeReady or Home Mortgage loan. This rate reduction translates to significant financial relief for new homeowners:
- Year 1 Payment: $1,816 (with a $400,000 loan at a 30-year fixed rate of 6.5%)
- Year 2 Payment: $2,016
- Savings: $411 monthly in Year 1 and $211 monthly in Year 2
Added benefits of this program include the reduction in monthly payments enabling new homeowners to allocate funds towards home furnishings, updates, and other needs without any added cost.
A Closer Look at Eligibility and Restrictions
While the benefits are substantial, it is essential to understand the eligibility criteria and limitations of these programs. For Purchase Plus, the lender credit is equal to 1.75% of the loan amount, up to $5,250, available to first-time home buyers and primary residence buyers whose income is 80% of the area median income (AMI) limit. This offer is not valid for FHA, VA,
USDA, or bond loans.
The Welcome Home RateBreak is available on HomeReady and Home Possible loans, offering an effective rate reduction but may require specific loan criteria for qualification.
Making Your Move
If you are a first-time home buyer or a primary residence buyer in the Phoenix-Mesa-Chandler area with income at or below 80% of the area median income limit, do not let financial challenges deter you. With programs like Purchase Plus and Welcome Home RateBreak, your dream home is within reach.
Contact:
- Phone: 602-550-2662
- Email: adam@districtlending.com
- NMLS: #305728
By taking advantage of such programs and understanding the resources available, buyers can confidently step into homeownership and begin building their future.
