LIME REALTY GROUP has decided to share more information about the first time home buyer assistance program by the City of St. George. Because of a number of people expressing interest in this program, we’ve done some additional research and will use this blog entry to clarify and expand on the information we’ve previously included.
First off, the program is actually called the Down Payment Assistance Program or DPAP. There’s some confusion as to how much the program offers and what exactly it pays for. We’ve read figures from $5,000 to $10,000; although it’s probably safe to assume the actual amount is somewhere in the middle.
Some websites list the money as a grant, and some are listing it as a loan. The actual truth is, it’s both. We’ll explain more in a moment. Our initial research pointed to the money being offered as a grant and could be used to pay a variety of different expenses such as home improvement, even refinance charges. However, based on the actual title of the program, it’s safer to assume the money is intended and will only pay the down payment and closing costs.
The program provides a non-interest-bearing loan for those who qualify for the program. So initially, it is viewed as a loan. If the home is occupied as a primary residence of the borrower throughout the 10 year loan period, the loan is forgiven and becomes a grant.
There are other requirements for this loan. To see if you qualify, contact us and we’ll start the process. Another bit of information concerning this program is a similar program that can work hand in hand is Home Ready. This is a similar loan/grant and can be taken as a second to the DPAP. Websites listing the total amount a first time home buyer and get are probably combining these two programs together into one lump sum. But no matter how you slice it, it’s a way for buyers who might not feel confident they could qualify for home ownership to get into the market.
Our friends at Bay Equity Home Loans have also tipped us off about the USDA’s Rural Housing program. This is a similar program but it covers areas in Washington County outside of St. George. Some of the beautiful areas it services include Ivins, Hurricane and LaVerkin. This is a slightly different program in that it doesn’t start the year with a limited pool of funds to draw from. If you want to build or buy a home in a more rural area, this might be the way to go. Once again, a quick phone call will help us get you scheduled to see if you qualify for these programs.
We work with highly trained agents like the folks at Bay Equity who know all about these programs and will certainly help you apply and get pre-qualified to buy a home so contact us today and let us set up a meeting for you. The sooner you apply, the sooner we know if you’ll qualify for some of this money. So make the choice and call today!