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Sunrise Banks

Down Payment Assistance

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Are you considering becoming a first-time homebuyer but unsure if it’s a feasible option for you?

At Sunrise Banks, we are not only passionate about financial wellness; we believe you deserve a chance at homeownership.

The process of buying your first home can be overwhelming. Our mortgage lenders are here to assist you in this journey and help make your dream of owning your home a more affordable reality.

We’ve compiled the following down payment assistance information and resources to help you navigate your way to responsible homeownership.

What is a down payment?

A requirement of most home mortgages, a down payment is a portion of the home’s purchase price that the buyer pays upfront. It is typically paid in cash, certified check, or equivalent at closing. The mortgage covers the remainder of the purchase price and repays monthly.

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What are the minimum down payment requirements for the mortgage programs offered through Sunrise Banks?

Down payment requirements vary by program, lender, income, credit history and other variables. Sunrise Banks is pleased to offer various lending options to meet your needs when buying a home.

Each of our mortgage programs has a specified minimum down payment requirement, outlined below:

  • Sunrise Banks Pathway2Home ITIN Mortgage:

    10%

  • HomeReady™ Mortgage:

    3%

  • VA Mortgage:

    No down payment required

  • Minnesota Housing Finance Agency (MHFA) Mortgage:

    3%

  • Federal Housing Administration (FHA) Loan:

    As little as 3.5%

  • Fixed-Rate Mortgage:

    As little as 3%

  • Adjustable-Rate Mortgage:

    5%

  • Investment Property Mortgage:

    20%

What is down payment assistance?

The good news is that down payment assistance may be available to help make your home-buying experience more affordable. While most programs are intended for first-time homebuyers, repeat homeowners may also be eligible for specific programs.

By taking advantage of down payment assistance options, you may be able to afford your first home, lower your interest rate, and reduce or eliminate private mortgage insurance. Use our home loan calculator to see how down payment assistance options could help make a home more affordable.

Want to see if you may qualify for down payment assistance with Sunrise Banks? Our mortgage loan officers are here to help. Off Site Link

Down payment assistance programs typically fall under the following main categories:

Grants

Grants are the most desired form of down payment assistance. They are essentially cash gifts that qualified home buyers are not required to repay. Grant programs are offered through state or local governments, nonprofit organizations, or other private- or public-sector entities.

Forgivable Loans

Forgivable loans are considered a second mortgage with zero percent interest. They are forgiven once the homeowner meets specific requirements – such as remaining in the home for a specified time. If the borrower fails to meet the stated requirements, part or all of the loan must be repaid.

Deferred Loans

Some homebuyers may qualify for a second mortgage loan where repayment is deferred. For deferred loan borrowers, payment is due when selling the home, refinancing, or after the first mortgage is paid down.

Low-Interest Loans

A low-interest loan is a second mortgage borrowed as the first mortgage is finalized. Low-interest loans and payments for the first mortgage are paid back in installments – usually monthly. The goal is to secure the lowest interest rate possible for maximum affordability.

Matched Savings Programs

Some banks, government entities, and other organizations will match the amount of money placed in a savings account with that institution. The total funds saved in the account can then be used toward a down payment. The specific match amount and other terms vary by program.

Tax Incentives

Certain tax credits and incentives may be available for qualified homebuyers. The Mortgage Credit Certificate (MCC) Program is an annual federal income tax credit Off Site Link created to help low- to moderate-income individuals and families afford homeownership. This tax incentive allows borrowers to claim a refund for a percentage of the interest paid yearly on their home. MCCs are intended for first-time homebuyers and vary on a state-by-state basis.

Reviewing all terms and agreements of any down payment assistance option before signing is critical. The trusted loan officers at Sunrise Banks – several of whom offer bilingual services – can provide the guidance you need to make safe and sensible decisions regarding down payment assistance.

How do I determine eligibility for down payment assistance?

Down payment assistance eligibility depends on the type of program you choose. It is usually assessed on several factors, including income, credit score, purchase price, home location, and whether or not you are a first-time homebuyer.

Other requirements might include the use of an approved lender or the completion of financial education instruction.

The best place to start determining your eligibility is by researching the different options to see which programs are best for you and meeting with one of our experienced loan officers at Sunrise Banks.

How do I contact a Sunrise Banks mortgage loan officer for help?

The path to owning a home can be complex, but our Sunrise Banks Mortgage Lenders provide personalized services for your unique position.

From determining eligibility to completing applications, our loan officers will guide you every step of the way – keeping your financial wellness front and center through the process.

Are you ready to determine if you qualify for down payment assistance and begin the home-buying experience?

Reach out to any of the seasoned lenders on our team via the form below or in person at one of our convenient branches for customized assistance, resources, and insight to help you safely and affordably fulfill your dream of homeownership:

Not sure where to start?

Fill out the form below and we can help guide you through the down payment assistance process.

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