Types of Down Payment Assistance.

Down Payment assistance programs allow you to buy a home with no money down. There are two primary types of programs one is a state sponsored program like MSHDA the other is a program offered by your lending institution. Gold Star Financial offers a conventional product called  Gold Star Advantage DPA and a FHA product called Gold Star Select DPA.

Which Down Payment Assistance program is right for you?

If you have excellent credit and solid income and job history you probably want to look at the Gold Star Advantage. This will be a conventional loan and will adhere to standard conventional guidelines. If you have less than perfect credit maybe a ding here or there or you are just getting started as a first time buyer then the Gold Star Select would be the best option for you. Below I will explain the primary differences.

Gold Star Select DPA Requirements:

• Standard FHA guidelines must be Approve/Eligible.
• Minimum Credit score of 600.
• Second mortgage in the amount of 3.5% of Appraised Value paired with first mortgage.
• Second Mortgage rate is 2% over first Mortgage note rate.
• Second Mortgage is a full 10 year amortization of principle and interest.
• Must be paid of on sale or refinance, lender will not re subordinate.
• Can also be used with up to 6% seller concessions.

Gold Star Advantage DPA requirements:

• Standard Conventional guidelines must be Approve/Eligible.
• Minimum credit score of 660.
• income subject 140% of AMI.
• second mortgage is 4% of Appraised Value paired with first mortgage.
• Second mortgage is the same as the first mortgage note rate.
• Second mortgage is an interest only payment.
• Must be paid of on sale or refinance, lender will not re subordinate.
• Can also be paired with up to 3% seller concessions.