In today's competitive real estate market, finding creative ways to help your clients achieve their dream of homeownership is crucial. Down payment assistance programs continue to be a valuable resource for homebuyers across the country. To help you better serve them and grow your business, Tag Lending Group (TLG) offers our exclusive 0% Down Purchase program. Simply put, qualified borrowers receive a 3% down payment assistance loan, up to $15,000, from TLG. This allows you to help more borrowers get into a home right now with no down payment.
Let's dive into the details and discover how this program can become a game-changer for your real estate business.
Understanding the 0% Down Purchase Program
- First and foremost, it's essential to grasp how TLG's 0% Down Purchase program works. This program is designed to break down the barriers of entry for potential homebuyers who may struggle with the initial down payment.
- The foundation of this program is a first-lien mortgage that meets the loan-to-value (LTV) requirements. This ensures that your clients can secure a primary loan that aligns with standard lending practices.
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TLG steps in to provide a second lien mortgage for 3% of the purchase price, up to $15,000. The beauty of this second lien is that it comes with no monthly payment requirement and no interest. This balance is due only when the first lien loan is refinanced or paid off, allowing homeowners to manage their finances more effectively.
- While payments on the second lien can be made throughout the loan term, they are not required. This flexibility is a significant advantage for borrowers who may need time to stabilize their financial situation after purchasing their home.
Qualifying Borrowers: Key Criteria
Understanding who qualifies for this program is essential for guiding your clients effectively. TLG has set forth clear criteria to ensure that those who need assistance the most can benefit.
- Borrowers must be at or below 80% of the Area Median Income (AMI) for the property address they are buying and meet Home Possible® guideline requirements. This ensures that the assistance reaches those in lower-income brackets.
- For very-low-income borrowers, whose qualifying income is at or below 50% AMI (VLIP borrowers), TLG provides an additional $2,500 credit as part of the 3% assistance. This credit does not need to be repaid and reduces their debt obligation from the second lien, making homeownership even more attainable.
- Alternatively, at least one borrower must be a first-time homebuyer and meet HomeOne® and TLG’s guideline requirements. A first-time homebuyer is defined as someone who has not had ownership interest in a home in the last three years.
- For borrowers with a 620+ FICO score and an LTV of equal to or greater than 95%, up to 97%, the program is accessible. For first-time homebuyers with a 700+ FICO score, the LTV must be greater than 95%, up to 97%.
The Realtor's Advantage: Growing Your Business
- As a real estate professional, leveraging TLG's 0% Down Purchase program can significantly boost your business. Here’s how you can maximize this opportunity.
- By offering a solution to potential homebuyers who may have been previously excluded due to down payment constraints, you can tap into a larger market. This program opens doors for many individuals and families, allowing you to grow your client base.
- Helping your clients secure a home with no down payment strengthens your relationship with them. They will appreciate your commitment to finding solutions that make homeownership possible, leading to increased client trust and loyalty.
- In a competitive real estate market, standing out is vital. Promoting your expertise in down payment assistance programs sets you apart from other realtors. Clients will see you as a knowledgeable and resourceful professional who can navigate the complexities of home financing.
The Path to Successful Homeownership
- Navigating the path to homeownership can be daunting for many clients. Here’s how you can guide them through the process, ensuring they understand and benefit from TLG’s 0% Down Purchase program.
- Start by educating your clients about the program. Explain the benefits and requirements clearly, so they know what to expect. Highlight how the program can make their homeownership dream a reality without the burden of a substantial down payment.
- Assist your clients through the application process. Ensure they gather all necessary documentation and meet the income and credit score requirements. Your support will ease their anxiety and make the process smoother.
- Discuss the long-term implications of the second lien mortgage. Help your clients plan for the eventual repayment when the first lien loan is refinanced or paid off. Providing financial planning resources can ensure they manage their finances responsibly.
Seize the Opportunity
TLG’s 0% Down Purchase program is more than just financial assistance; it’s a gateway to homeownership for many deserving individuals and families. As a realtor, you have the unique opportunity to transform lives by leveraging this program. By understanding its intricacies and effectively communicating its benefits, you can expand your business, build lasting client relationships, and stand out in the competitive real estate market.
Seize this opportunity to make a meaningful impact in your client's lives and watch your business grow.