Need Cash to buy a home?
When you use one of NH Housing’s programs you can also get cash assistance which can be used toward either down payment or closing costs. The Cash Assistance comes in the form of an interest-free second mortgage which is forgiven in full after four years unless during the first four years, the borrower: 1) sells; 2) refinances; or 3) moves out of the property 4) files for bankruptcy, in which case the borrower must repay the Cash Assistance. Just keep the home as your primary residence for a full 4 years, don’t refinance, pay your payments on time and don’t declare backruptcy – do these 4 things for 4 years and the cash assistance loan is forgiven!
The minimum credit score is 620. If this sounds too good to be true, believe it anyways! The reason why this offer is made is that the borrower does agree to a higher interest rate.
NH Housing offers 2%, 3% and 4% cash assistance, depending on your needs. The rate for the 2% assistance is lower than the rate for 3% assistance and the 4% assistance has the highest base interest rate. The amount of assistance is determined by multiplying the base loan by the % (either 2%, 3% or 4%). The base loan is the loan amount before any financeable fees are added to the loan.
When you use cash assistance, it can be used toward down payment. Sellers can help pay your closing costs but sellers can never contribute toward your down payment. For FHA loans, you normally need 3.5% down payment. NH Housing’s cash assistance can go directly toward that required down payment! When combined with a seller paid closing costs, a buyer can use the FHA/NH Housing combo to get into a home for less as little as $1000 total.
More info can be found at NH Housing’s website: www.gonewhampshirehousing.com