07/08/2026
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2% Down Payment Grant FAQs‼️ PLEASE READ ALL FAQs BEFORE ASKING ANY QUESTIONS🛑
1. What score do I need? 620 MORTGAGE FICO(+)
2. Where is it available? I CAN ASSIST IN ANY STATE EXCEPT NY & WA WITH THE GRANT
3. What type of loan is this? FHA LOAN
4. What kind of home can I purchase? 1-4 UNIT HOMES, CONDO, MANUFACTURED HOME.
4. Can I buy an investment property or second home? NO, THIS IS FOR PRIMARY RESIDENCE PURCHASES ONLY IF YOU DON’T PLAN TO LIVE IN THE HOME FULL TIME, YOU CANNOT USE GRANT.
5. Do I need to be a first time homebuyer? NO
6. Are there income limits? NO
7. What is the maximum home price I can buy? Put in your city and state here and you will see maximum FHA loan limits for your area👉🏾https://entp.hud.gov/idapp/html/hicostlook.cfm
8. Does this work for construction loans? NO
9. Is it a 2nd lien or do I have to stay in the home for a certain time before it’s forgivable? NO, THERE IS NO LIEN OR TIME REQUIREMENT. IT IS FORGIVEN ON THE DAY OF CLOSING‼️
10. What is the DTI requirement? IT FOLLOWS FHA GUIDELINES 46.99% MAXIMUM MORTGAGE PAYMENT AND 56.99% MAXIMUM TOTAL DEBTS
11. Are there additional fees? WHEN YOU APPLY, YOU MUST PAY $136 FOR A CREDIT CHECK. ONCE UNDER CONTRACT, YOU MUST PAY $100 FOR A HOMEBUYER EDUCATION COURSE. YOU ARE ALSO RESPONSIBLE FOR CLOSING COSTS UNLESS SELLER PAYS.
12. What is the interest rate? THERE IS NO SET INTEREST RATE‼️ The rate with the grant will be higher than with a traditional FHA loan. For example, a person with a 620 credit score, buying a $300,000 home, 30 year term, FHA loan with NO GRANT, the par rate for them was 5.75% (6.909 APR) and the par rate for the same person using the grant was 7.125% (8.349 APR). The interest rates are higher using the grant meaning you pay more monthly instead of making a full down payment. That is the tradeoff‼️ However, since the grant is forgiven and has no 2nd lien, if you make the first 6 payments on time, at month 7, you my do a streamline refinance and lower the rate to a traditional FHA loan rate.
The closing costs are also higher, so it works best when you can get the seller to give a 6% seller credit to cover closing costs for you.
13. What is the process?
Put in a loan application, and put 1.5% on your application as your down payment and complete the application, and upload all your initial documents. Pay $136 for your credit check, and your application will be processed to see how much you qualify for.
The link to the application is👉🏾https://legacylendingmg.my1003app.com/1816247/register?time=1706053047475
🗣️🗣️🗣️There is no additional information‼️ This is an FHA loan and follows all FHA guidelines. FHA loans require a down payment of 3.5%. With this program, you pay 1.5% of the 3.5% and the bank gives a grant of the additional 2% to cover the remaining with no strings attached⭐️
SEE PHOTO FOR PREVIOUS POST👇🏾👇🏾👇🏾
