For many buyers, qualifying for the monthly mortgage payment isn’t the biggest obstacle to purchasing a home. The challenge can be having enough money available for the down payment and other upfront costs.
That is where HomeZero FHA may provide another option.
HomeZero combines FHA financing with several down payment assistance structures designed to help qualified borrowers move forward with a home purchase.
HomeZero offers multiple assistance options depending on borrower eligibility and applicable program guidelines.
3.5% Forgivable DPA
Provides assistance through a forgivable second mortgage structure for eligible borrowers.
3.5% Repayable DPA
Offers another way to receive assistance through a repayable second mortgage.
5% Repayable DPA
Provides a higher assistance option that may help borrowers manage additional upfront homebuying expenses.
The right structure depends on the borrower’s individual financing scenario and program eligibility.
HomeZero may also provide opportunities for borrowers who do not fit into a one-size-fits-all financing box.
The program allows for a minimum 600 FICO with AUS approval.
Manual underwriting is also available with a 660 minimum FICO and maximum 45% DTI, subject to applicable underwriting requirements.
One of the most important features of HomeZero is that borrowers do not have to be first-time homebuyers to potentially qualify.
The program also has no income restrictions, creating another potential option for qualified borrowers who may not fit within the limits of certain traditional down payment assistance programs.
HomeZero is an FHA fixed-rate program and may also provide additional flexibility, including temporary rate buydown options and forgivable or repayable second-mortgage structures.
Maximum LTV and CLTV are subject to applicable FHA, investor, and program guidelines.
For Realtors, HomeZero can be especially useful when a buyer appears capable of supporting the mortgage payment but needs help managing the funds required to complete the purchase.
Instead of assuming the buyer needs to step away from the market, it may be worth reviewing whether a down payment assistance solution can help bridge the gap.