Do you know someone in Washington or California who would like to buy a home but is short on down payment money? If so, please pass on this information to them.

I have available a private source for up to $5,000 grant to pay for or help with a down payment. UPDATE: This promotion is ending soon. You must have your full loan application into underwriting, including the signed Purchase Agreement by the end of May.

Here are the facts:

THE MONEY

1. Free money, no pay back, ever. (Not an assistance program where you pay it back later.)
2. Down payment is 3%. On a $250,000 home, the grant would cover all the down payment. For a more higher priced home, you would need to make up the difference between $5,000 and the 3%.
3. Closing costs can be paid by buyer or seller (not included in the grant). A lender credit can help with closing costs.

BUYER REQUIREMENTS

1. Must be either a first-time home buyer or…
2. Cannot have owned a home in the past three years.

CREDIT REQUIREMENTS

1. Credit score must be 740+. (Middle credit score of three; one score can be lower.)
2. Chapter 7 or 11 bankruptcy must be discharged for 4 years.
3. Chapter 13 bankruptcy must be two years from application/four years from dismissal
4. Short sale must be four years from date of sale.
5. Foreclosure must be seven years from date of sale.
6. Credit must qualify for a Fannie Mae conventional loan.

INCOME REQUIREMENTS

1. No restriction on income. You can make $million and still qualify.
2. Must be able to afford the money payment, per conventional loan guidelines. Max debt-to-income ratio is 50% DTI.

OTHER NOTES

I have this for California and Washington states only. Soon, Oregon, so follow my blog to receive that announcement.

The “catch” is that I have to be allowed to explain this program to your real estate agent. The purpose of the grant money is to generate more loan business. Again, this is not a government program; it is a private money source. You’ll also need to take an online home buyer class after you have a purchase agreement, which is easy and fun.

Please contact me here if you’d like to get pre-qualified, or if you are a real estate agent in CA or WA who would like to know more about this program.

Thank you, and here’s to more people becoming home owners!

Carolyn Warren, Sr. Loan Officer, NMLS # 1284134, WA First Mortgage, a broker doing business in Western states.