One of the best investments for any family is a home. And while
most families can afford a mortgage, it’s difficult to find the funds
for a down payment. We believe that every hard working family deserves
a home, regardless of how much money you can put down. We can help you
turn your next rent payment into your first mortgage payment on a new
home.
We have money available for potential homebuyers like you. There is
no catch! Our funds are a charitable gift to you called the NHG Grant.
This is not a loan that will need to be repaid. Whether you are buying
your first home or not, you can take advantage of our Gift Fund
Program.
Frequent Ask Questions?
How do buyers
participate in the program?
Homebuyers complete a loan with YOUR MORTGAGE MALL. Your assigned loan
officer will make all arrangements for you.
Is this program only
for first-time homebuyers?
No. The program can be used by anyone regardless of how many homes
they have purchased before. There is no restriction on the number of
times that they can use the program.
Are there any income or purchase price
restrictions for buyers using the program?
Potential homebuyers are not restricted by income limitations, but
rather by the price of the home they wish to buy. The program is
available to qualifying homebuyers interested in buying a home with a
purchase price no greater than $333,700 for single-family homes and
$641,650 for multi-unit properties.
Does the down payment gift come from the
builder/seller?
No. The down payment funds come from a pre-existing pool of
money. The funds do not come from the builder/seller.
Can the program be used for conventional
loans?
As long as the loan program allows the use of gift funds, NHG
Grant has no restrictions on the types of loan programs that its
Homebuyers use. To be sure, buyers should check with their
lenders to see if the use of NHG Grant gift funds is allowed.
Is there a limit to the amount of gift
money that is given?
NHG Grant ’s down payment gift is based on a percentage of the
purchase price of the home. Most NHG Grant gifts range
from 2% to 6% of the purchase price of the home.
How long does it take to receive gift funds
from NHG Grant once the forms have been submitted?
Gift funds are wired directly to the Settlement Agent’s escrow account
on the day of settlement. The funds are not sent directly to the
buyer.
Can the buyer use NHG Grant in
combination with other gift programs or along with some of their own
money?
Assuming loan limitations and other programs allow it, NHG
Grant gift funds may be used in combination with other housing
assistance programs or gift programs. Buyers may also use NHG Grant
funds in combination with their own money if they wish to increase the
amount of the down payment. Buyers are not required to come up
with any money of their own to accompany the NHG Grant gift
fund.
Can the program be used towards the
purchase of new homes?
NHG Grant gift funds may be used towards the purchase of new or
existing homes, as long as the builder or seller has enrolled the home
in the NHG Grant program.
Why would a seller want to pay a fee to
sell their home through the NHG Grant Down Payment Gift Program?
Sellers who participate in the program typically do so because of the
larger pool of potential buyers that become available as the result of
their participation. More qualified, potential buyers are likely to
mean less time on the market for a property. Finally, over time, most
sellers find that they must reduce the price of their homes anywhere
from 2-5% in order to sell. Sellers using the NHG Grant program
find that the increased pool of buyers enables them to sell their
homes more quickly and often, at the original asking price.
Can the buyer keep any “extra” gifted money
that is not used towards the purchase of the home?
Homebuyers agree to return any gift funds not used toward the down
payment or allowable closing costs. The entire gift must be returned
if the home purchase does not close.
Can NHG Grant funds be used to pay
‘points’?
Yes, “points” are considered part of the closing costs associated with
a loan. NHG Grant gift funds can be applied to pay closing costs
as well as the down payment on a home purchase.
Does NHG Grant require a certain
credit score for potential homebuyers?
No. NHG Grant does not qualify the buyer for loan, that is up to
the lender.
Is the NHG Grant program the same as
a ‘silent second’?
No. NHG Grant funds are gift funds, they are not a mortgage or
second mortgage in any way and never have to be repaid.
