Down Payment Assistance Mortgage

EPM Empowered Down Payment Assistance Mortgage Program

Gustan Cho Associates are mortgage brokers licensed in 48 states

This guide covers EPM Empowered down payment assistance mortgage programs. There are several types of down payment assistance mortgage programs for homebuyers. We have some very exciting news at Gustan Cho Associates.  The team at Gustan Cho Associates offers two different types of down payment assistance mortgage program: Forgivable and non-forgivable DPAs. We offer the EPM DPM Program with non-forgivable down payment assistance mortgage! We will discuss the types of down payment assistance mortgage options and their lending requirements:

We are excited to say you can purchase a house with as little as a 0% down payment and no closing costs.

We are excited to announce we can offer down payment assistance mortgage programs in most of the states we operate in. This guide covers various types of down payment assistance mortgage options for homebuyers.  There are forgivable and non-forgivable down payment assistance mortgage options for homebuyers.

Empowered DPA Program: 3.5% Down Payment Assistance Mortgage Grant

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In this section, we will cover the Empowered DPA program. Unlike other down payment assistance mortgage programs, the Empowered Down Payment Assistance Mortgage Program has lenient guidelines.

Some down payment assistance mortgage programs require a certain credit score, income level, and debt-to-income ratio or are certain state-specific.

The Empowered DPA program is offered by Equity Prime Mortgage (EPM). The EPM down payment assistance mortgage program comes with a forgivable grant equal to 3.5% of the purchase price. The minimum credit score is 620 FICO. The EPM Empowered DPA program covers FHA loans’ minimum 3.5% down payment requirement. Must have an automated AUS Approval (no manual underwriting).

How Does The EPM Empowered DPA Program Work

Empowered DPA down payment assistance mortgage program gives homebuyers up to 3.5% of the purchase price of a home, which is the down payment requirement on FHA loans.

The EPM Empowered down payment assistance mortgage program comes as a forgivable grant.

The down payment assistance does not need to be paid back after six months. A forgivable grant means the 3.5% down payment assistance mortgage does not have to be paid back after the borrower has made the initial six monthly mortgage payments.

Eligibility Requirements For EPM’s Empowered DPA Program

Three different classes of homebuyers can qualify for the EPM Empowered DPA FHA mortgage program. First-time homebuyers are eligible for the Empowered DPA program. A first-time homebuyer is a buyer who has not had ownership of a home in the past three years.

Even though Gustan Cho Associates has no lender overlays on government and conventional loans, most down payment assistance mortgage programs have lender overlays.

If you are a first responder, do volunteer work, or are an active or retired member of the U.S. Armed Services, medical professional, school teacher, or city, county, state, or federal employee, you qualify for the Empowered DPA program. 

DPA Mortgage For Low To Moderate Income Families

Homebuyers of underserved census areas can qualify for the Empowered DPA mortgage program.  Other borrowers who qualify are folks whose income exceeds 140% of the state or county median income.  The income for borrowers on the application cannot be higher than 140% of the state or county median Income. This holds regardless of family size.

Borrowers need to take a HUD-approved homeowner education course offered by Framework Homeownership or from a HUD-approved counselor.

Certain down payment assistance mortgage programs require completing a homebuyer education course or counseling before applying for assistance. The course or session can help you learn about the home-buying process, budgeting, credit, mortgage options, and homeownership responsibilities. The course or session can be online or in-person and may have a fee or be free.

What Are The Empowered DPA Mortgage Guidelines and Requirements

To qualify for the EPM Empowered DPA mortgage program, borrowers need to have a minimum 620 credit score and be buying a primary owner-occupant residence. You need to meet the minimum HUD guidelines for FHA loans. You need an automated underwriting system approval.

The Equity Prime Mortgage Empowered DPA Program is available in all states, except for Washington state. Most down payment assistance mortgage programs are only available in one or a few states.

The standard maximum front-end debt-to-income ratio is 46.9%, and the back-end debt-to-income ratio is 56.9% on standard FHA loans. The maximum front-end and back-end debt-to-income ratio cannot exceed 48.99% for the Empowered DPA mortgage program. The maximum loan-to-value is capped at 96.5%.

Occupancy Guidelines on Empowered DPA

Some programs require that you live in the home as your primary residence for a certain period, such as one year, five years, or the loan duration. You cannot rent or sell the home during this period without paying back the assistance or facing penalties. Some programs may also allow you to buy a home as a second home or an investment property but with different terms and conditions.

What Type of Properties Is Eligible For Empowered DPA Mortgage

Some programs are only available for certain properties, such as single-family homes, condos, townhomes, or manufactured homes. You need to buy a home that meets the property standards and specifications of the program. Some programs may also limit the purchase price or value of the home.

Single-family homes, townhomes, duplexes, single and double-wide manufactured homes, HUD-approved condominiums, and PUDs.

Down payment assistance can be a great way to help you buy a home with less money upfront. However, down payment assistance is not free and has pros and cons. Do your research and weigh your options carefully before applying for any program. You should also consult with a mortgage professional and a financial advisor to ensure you can afford the mortgage payments and the long-term costs of homeownership. There will be an official announcement once we officially roll out this program!!

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