Dakota County Program Lowered Their Rate!
Posted on July 13th, 2010 by Darcy
With rates falling, a few of the first time buyer programs have been lagging behind as they still have higher rates. A regular FHA fixed rate is between 4.5% and 4.75%* today. The Dakota County program’s rate was at 4.99%. Many people are still taking advantage of the program since it offers down payment assistance. Recently, they lowered the rate to 4.75% to be competitive with the market. So you know, this is a rare thing for first time progams. Normally when there is money alloted to the counties, the initiative is set at a certain amount of funds and a certain rate. This is great news!
To repeat, many people are taking advantage of this program not just for the rate, but the opportunity to get down payment assistance. The Dakota County program offers three tiers of assistance depending on household income. Household income is defined as income brought in by all people in the home over age 18 and includes such income as bank interest, child support/alimony, side jobs, etc. Even if the income can’t be used for qualifying (i.e. overtime that has been received for less than two years), it is still figured into the limits for first time buyer programs. Here are the down-payment tiers:
Household 10% 5% 2.5%
Size Income Limit Income Limit Income Limit
1 $29,400 $45,100 $84,000
2 $33,600 $51,550 $84,000
3 $37,800 $58,000 $92,400
4 $42,000 $64,400 $92,400
5 $45,400 $69,600 $92,400
6 $48,750 $74,750 $92,400
7 $52,100 $79,900 $92,400
8 $55,450 $85,050 $92,400
Max assistance for the 10% limit is $10,000 and max for the 5% limit is $7500.
So what do the numbers mean? Let’s reference the middle column. Let’s say you have 3 people in your household. That means your total household income must be under $58,000 — one cent over and you go to the next column. In this scenario, you qualify for down payment assistance equal to 5% of the base loan amount, with a max of $7500. The first time buyer assistance is a second mortgage that is placed against your home when you close. It is an interest-free and payment-free loan. If you received $7500, you would pay back $7500 either when you refinance your loan or sell your home.
If you’re looking in Dakota County for your first home, definitely check out this program. All lenders are not created equally with first time programs. Lenders must be approved to do this financing. Obviously, I can help! It’s time to take advantage of all you have to gain as a first time buyer in this market!
*Rates are subject to change.
Tags: Dakota County, down payment assistance, first house, first time buyer programs, first time home buyer
