When it comes to buying a home, many buyers are put off by the idea of having to come up with a 20% down payment. And while 20% may sound like a lot, it’s important to understand that the larger the down payment, the less time it will take to pay off the mortgage. If you can’t afford a 20% down payment, though, you do have other financing options, including the Welcome Home Program.
With the Welcome Home Program, you are only required to have a 3% down payment, and you can easily receive help with the deposit. There is a $5,000 maximum, and funds are dispersed on a first come, first serve basis. It’s imperative to keep in mind that the funds go quite quickly, too! When the funds are first made available each year, they usually last about a month.
Is the Welcome Home Program for first-time buyers only?
Many buyers look over taking advantage of the Welcome Home Program because they think they have to be first-time homebuyers to qualify. Truth is, though, as long as you have not owned a home in the last three years, then you can still qualify. If you are a first-time homebuyer, however, you will be required to go through a homebuyer counseling program before being able to qualify for any funds through the Welcome Home Program.
How does the money acquired through the program have to be spent?
When you acquire funds through the Welcome Home Program, you must use it for one of two purposes, or both — a down payment and/or closing costs. Under no circumstance can you use the money for home improvements.
What happens when a person uses the funds to buy a home and then sells the home?
If you use funds through the Welcome Home Program to buy a home, it must be stated in the deed that you will pay back the funds on a prorated basis in the event that you sell the home within the first five years after buying it. As long as the home isn’t sold within the first five years, you will not have to pay back the funds.
What is the best way to determine if you qualify for the Welcome Home Program?
If you are interested in qualifying for the Welcome Home Program, you’ll want to stop in at one of the Mercer Savings Bank locations and speak with a loan officer. You will need to have a home in mind that you want to purchase, and even better is if you already have a buying contract in development! In fact, before a request can be submitted for the Welcome Home Program, a contract will need to be signed by all parties involved.
If you’re looking for more information on the “Welcome Home” program call us at 419.586.5158 or click here to contact us today!