Down Payment Assistance Programs? Huh?

Do Down Payment Assistance Programs exist? Loan agents will know more about this than I could ever put in a few sentences, but a true DAP is like Nehemiah where they “gift” the borrower all the down payment funds in return for charging the seller a fee. These work almost exclusively with FHA loans. However, DAP’s are often lumped in with “community 2nd” types of programs, whereby various cities and counties across the US offer a wide range of products that are virtually impossible to track from a corporate stand point, since they “run in and out of money” all year long. Here in California, for example, one of the most popular is the CHDAP which is a CHFA 3% “silent 2nd” that works out very well for the borrower. Or the ACCESS purchase money 2nd program, which is administered by the National Homeownership Fund. There are several sites on the web such as http://www.downpaymentsolutions.com.

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