Imagine covering your entire down payment and having extra funds for closing costs—all without the burden of extra lender fees. With JVM’s In-House Homebuying Assistance, eligible homebuyers can receive up to 5% in assistance, making it easier than ever to step into your dream home. This program is designed to lower your cash-to-close requirements, ensuring that the journey to homeownership is both accessible and affordable.
How It Works
In today’s competitive housing market, every dollar counts. JVM Lending’s In-House Homebuying Assistance Program provides critical financial support that can make homeownership more accessible and affordable. Here’s why it’s beneficial:
- Reduces Upfront Costs: With assistance covering up to 5% of your home’s purchase price, you can eliminate the barrier of a hefty down payment and cover closing costs, easing the financial strain during a crucial time.
- Enhances Budget Flexibility: By lowering your cash-to-close requirements, you have more flexibility in managing your finances and can allocate funds to other essential areas, such as moving expenses or home improvements.
- Adaptable Options for Every Buyer: Whether you prefer a repayable plan with structured monthly payments or a forgivable option that may eventually relieve you of repayment obligations, this program is designed to suit various financial situations.
- Transparent and Accessible: With no hidden fees and straightforward eligibility criteria, the program offers clarity and confidence in your homebuying journey, a vital factor in today’s ever-changing market.
In an environment where housing prices continue to rise and securing a mortgage can be challenging, this program offers a timely solution to help you get into your new home with greater ease and financial security.
Program Highlights
| Up to 5% in Assistance | Covers your entire 3.5% down payment plus an extra 1.5% for closing costs |
| Flexible Assistance Options | Choose between a repayable or forgiveable option to suit your financial needs |
| No Additional Fees | Offered directly through JVM Lending—no extra lender fees or closing costs added |
| Lower Cash-to-Close | Enjoy a significantly reduced cash-to-close compared to other programs |
| Broad Property Eligibility | Can be used for both Single Family and Duplex properties |
| Open to All Qualified Buyers | Not just for first-time homebuyers |
Program Eligibility
| First-Time Homebuyer Required? | No – This program welcomes all qualified buyers, regardless of whether you’re a first-timer or a seasoned homeowner. |
| Minimum Credit Score | 600 |
| Loan Type | FHA |
| Income Limits | None – Income restrictions won’t hold you back from exploring your homebuying options. |
| Property Type | Single Family or Duplex |
| Occupancy | Primary Residence Only |
How the Repayable Program Works
When you choose the repayable option for JVM’s Homebuying Assistance, you receive help with your down payment and closing costs in the form of a second mortgage. Here’s what that means in simple terms:
Extra Funds at Closing
You can get up to 5% of your home’s sales price or appraised value (whichever is less) to cover your down payment and closing costs. These funds are provided at the time you close on your home.
Second Mortgage Explained
This assistance isn’t a gift—it’s a second loan that you’ll repay separately from your main (first) mortgage. Think of it as a mini mortgage designed just to help you with your initial costs.
Repayment Terms
- 10-Year Term: You repay the second mortgage over 10 years.
- Monthly Payments: You make regular monthly payments, just like you do with your first mortgage.
- Interest Rate: The interest rate on this second loan is set at 2.0% higher than the rate on your first mortgage.
How the Funds Are Used
The funds from this second mortgage can only be used for your down payment and closing costs. You can’t receive extra cash beyond these amounts.
Key Points to Remember
- The loan is fully amortizing, which means it is structured to be completely paid off by the end of the 10-year period.
- This program is governed by FHA guidelines and is processed in compliance with federal RESPA and Truth-in-Lending laws, ensuring all terms are clear and transparent.
In summary, with the repayable program, you get the financial boost you need to cover upfront costs, and then you repay that amount over 10 years with predictable monthly payments. This structured approach helps make homeownership more accessible while keeping your overall costs manageable.
How the Forgivable Program Works
When you choose the forgivable option for JVM’s Homebuying Assistance, you receive help with your down payment and closing costs as a second mortgage that could eventually be completely forgiven—meaning you won’t have to repay it—if you meet a few simple conditions. Here’s a breakdown:
No Monthly Payments or Interest
At closing, you get up to 3.5% of your home’s sales price or appraised value to help cover your upfront costs. This money comes as a 30-year second mortgage with no monthly payments and a 0% interest rate.
Forgiveness After 10 Years
The loan is designed to be forgivable if you:
- Keep the loan for at least 10 years from the note date.
- Continue to live in the home as your primary residence.
- Avoid certain “repayment events” (such as refinancing your first mortgage, selling the home, or any situation where the first mortgage becomes due early).
What Happens if You Meet the Conditions
If you satisfy these conditions for 10 years, the second mortgage is forgiven, meaning you won’t have to repay the assistance funds.
If Conditions Aren’t Met
Should you refinance, sell, or otherwise cause the first mortgage to become due before the 10-year mark, the forgiveness benefit will not apply, and the loan may need to be repaid.
In summary, the forgivable option is an attractive way to lower your upfront costs without adding extra monthly payments. It’s designed to support you on your homebuying journey, offering the potential for the assistance to be entirely forgiven if you remain in your home and meet the program’s requirements over time.
Frequently Asked Questions
What is JVM’s In-House Homebuying Assistance Program?
This program is designed to help you cover your down payment and closing costs. It provides up to 5% in assistance through a second mortgage available in two formats—a repayable option and a forgivable option.
Who is eligible for this program?
The program welcomes all qualified homebuyers, not just first-time buyers. Eligible applicants must have a minimum credit score of 600 (or 660 if manually underwritten for FHA), be able to make at least a 3.5% down payment, and meet FHA guidelines. Properties that qualify include single-family homes, duplexes, PUDs, townhouses, condominiums, and certain manufactured homes.
How much assistance can be received?
Under the repayable option, you may receive up to 5% of the home’s sales price or appraised value—with 3.5% for the down payment and an additional 1.5% for closing costs. The forgivable option offers up to 3.5% to be used for down payment and/or closing costs.
What is the difference between the repayable and forgivable options?
The repayable option is a 10-year fully amortizing second mortgage with monthly payments and an interest rate that is 2% higher than your first mortgage rate. The forgivable option is a 30-year deferred second mortgage with no monthly payments and a 0% interest rate. With the forgivable option, if you keep the home as your primary residence and avoid certain repayment events for 10 years, the loan is completely forgiven.
Will I need mortgage insurance?
Mortgage insurance is a requirement for FHA loans to protect the lender in case of default. Even with our down payment and closing cost assistance program, you’ll still need to pay both an upfront premium (which can be rolled into the loan) and an annual premium added to your monthly payments. These costs are calculated based on your loan amount and down payment and remain separate from the assistance provided. Our team is here to help you understand how mortgage insurance affects your overall mortgage costs so you can plan your budget with confidence.
Are there any additional fees?
No extra lender fees or hidden closing costs are involved. The program is offered directly through JVM Lending to help lower your cash-to-close.
Your Next Step with JVM Lending
Our team at JVM Lending is here to guide you every step of the way. Start your JVM loan application online or contact us today to discuss your homeownership goals and learn more about how our in-house homebuying assistance could be the key to unlocking your dream home.
