BOULDER – Guaranteed Rate is proud to introduce its newest down payment assistance loan program, Double Match. If you are interested in purchasing a home with as little money down as possible, this program can help. Here’s what you need to know in order to get started and see if you are eligible.
What Is double match?
This down payment assistance program consists of a 2% grant from Guaranteed Rate, with 1% contributed from the borrower as a down payment. This program is available nationally for those looking to purchase a property, and who meet income and location criteria (detailed below).
With the Double Match program, the borrower is only required to pay 1% of the total purchase price, and Guaranteed Rate covers the remaining 2%, making it a 97% loan-to-value conventional loan. The grant does not have to be paid back, and there is only a 1-year pre-payment penalty. All of this comes with one stipulation: the down payment must come from the borrower’s own funds (not a gift).
Eligible borrowers must meet census tract based income restrictions, or the property must be located in a targeted area.
To meet the income requirements, the borrower’s annual income must be equal to or less than the area median income (AMI) for the census tract where the property is located. There are exceptions when the property is located in an area designated as “Underserved” or “High Cost.” It’s also important to note that the income limit is based on the borrower’s income, not the household income. For example, if the loan is in one spouse’s name and the other spouse is not on the loan, the second spouse’s income is not counted toward the limit. Borrowers must also have a minimum credit score of 680 in order to qualify.
A requirement of the Double Match program is that the borrower must purchase private mortgage insurance (PMI), which is included in the monthly mortgage payment. However, since this is a conventional loan (versus a government-insured loan), the PMI is not required for the life of the loan. Once the borrower has accrued 20% equity in the property, the PMI may be dropped. Additionally, there is no government funding fee as there is with government-issued loans.
Guaranteed Rate’s Double Match program is a very helpful option for those who are looking to get in a new home with the smallest down payment possible.
Michaela Phillips is the Vice President of Mortgage Lending at Guaranteed Rate, Inc., the 8th largest retail mortgage company in the country. Since entering the mortgage industry in 1994, she’s consistently been a top producer. Being a VP at Guaranteed Rate offers many advantages to her and her clients including unparalleled customer service, efficiency, and most importantly competitive rates. Contact Michaela at 303.579.5517 or via e-mail at [email protected]. NMLS:312874. michaelaphillips.com
By Michaela Phillips, Guaranteed Rate Inc.