Lower Your Borrowing Costs with the Downpayment Plus Program
If you are looking to buy a home, you may be eligible to receive up to $10,000 towards your down payment and closing costs. Security Financial Bank (SFB) is a participating lender for the Downpayment Plus® program from the Federal Home Loan Bank of Chicago. This grant program is not just for first-time homebuyers; it is available for anyone who meets the following qualifications:
- The grant cannot exceed 25% of the first mortgage amount.
- The buyer must contribute at least $1,000 of their own funds to the purchase of the home. Gifts do not qualify. Assets held jointly are acceptable as long as the borrower is a joint owner. No co-signers, guarantors, or other non-occupying co-borrowers.
- There are household income restrictions. All household members' incomes over the age of 18 are included in determining household income eligibility.
- The purchase must be a primary residence - refinances are not eligible. One-to-two-unit homes are acceptable.
- Buyers can use the funds for down payments and closing costs. The funds also can be used for interest rate buy down and to fund escrow accounts.
- Homebuyer education and counseling is required for the fulfilment of the grant.
Grants are forgiven on a monthly basis over a five-year period and can be used on a variety of mortgage products.
The Downpayment Plus® program may sound complex, but SFB mortgage lenders help buyers with these programs regularly and are experts at making the process easy for you. Make an appointment online with an SFB mortgage banker today or call 888.254.0615 to get started.