FHA and Down Pament Assistance Programs
Hi BP community,
My wife and I are going to be purchasing an investment property whereby we are going to live in one side and rent out the other, thereby living rent free and cash flowing a little in the end, assuming everything pans out in our favor.
We're planning on financing this property via an FHA loan with 3.5% down. The purchase price of the property is near $400,000 so coming up with 3.5% down would be a little difficult in our currently situation and income. However, we came across a few different non-profit programs that offer grants to help cover costs of the down payment, so called "Down Payment Assistance" programs.
The one that caught our attention was the Neighborhood Gold Assistance Program. It will fund up to 10% of the purchase price, can be used on any type of property, owner occupied or investment, and does not have to be repaid. In other words, it is investor friendly!
Has anyone had experience or any recommendations with FHA loans and covering the down payment and/or closing costs with one of these Down Payment Assistance Programs?
Thanks!
- Bryce