Buyers Fund -- No Down Payment Mortgage Assistance

	Discovering Homeownership

	Learning About Credit & Income

	Banking on a Mortgage

	Understanding Settlement Costs

	Homeownership

	Understanding Refinancing

Downpayment

The down payment you will need is determined by a number of factors. The loan program you select will carry a required down payment, usually 3 to 5 %. Another factor could be your credit and income and the effect they have on the qualifying ratios.

If you put less than 20% down, you will be required to pay mortgage insurance. Mortgage insurance provides insurance to protect the lender should a borrower go into default and foreclosure.

Down Payment Options

Acceptable sources for the down payment must be proven. Some acceptable sources are: state and federal agencies, employers, sale of an asset, or gifts from family members. These funds must be in your personal accounts or sent directly to your closing officer on the day of closing if a nonprofit or governmental agency is involved.

Closing Costs
The cost of homeownership continues with closing costs and the associated fees needed to process and conclude the purchase transaction. We feel this is a very important topic and we have devoted Chapter IV entirely to understanding closing costs.
At the time of your loan application your lender will be required to provide you with a Good Faith Estimate and Truth in Lending Disclosure. They are required by law to provide these two disclosures within three business days from the time of loan application.

Next: Pre-approval & Sales Contracts

Down Payment:
A portion of the price of a home, usually between 3-20%, not borrowed and paid up front.

Mortgage Insurance: Insurance needed for mortgages with a low down payment-usually less than 20% down.

FHA Loan: This is a mortgage type that is insured by the US government protecting the lender against losses incurred in a foreclosure action.

Closing Costs:
The costs to complete the real estate transaction. These costs are in addition to the price of the home and are paid at closing. They include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other costs. Ask a lender or real estate professional for a complete list of closing cost items.

Good Faith Estimate of settlement costs:
A written statement itemizing the approximate costs and fees for the mortgage.