Big changes for down payment assistance programs

[On Friday last week I received the following message from Lisa Fleck, a Sr. Loan Consultant at Summit Funding, Inc. as well as a contributor to this blog. In her email, Ms. Fleck details recent changes to the Nevada Housing down payment assistance program. I thought I'd pass it along.]

Today’s announcement by NV Housing regarding the down payment assistance program following NV Rural’s recent tightening of guidelines, is another indication that the availability of these programs is decreasing.

Earlier this month NV Rural, the program available everywhere in northern Nevada except for the City of Reno, announced that they were implementing strict debt to income ratios guidelines, regardless of automated underwriting approvals. To use this program, the borrowers DTI cannot exceed 45%, by even .01. On a positive note the rate remained the same at 3.75% and the “gift” remained that same at 4% of the loan amount, the program has expanded to include all home buyers.

Yesterday NV Bond, the program that can be used anywhere in the state and provides assistance through a loan that has to be re-paid, announced that they were lowering their allowable DTI to 35% effective immediately. They followed up today with an additional announcement lowering the assistance loan from $4,500.00 to $3,000.00 and announced a rate increase from 3.5% to 3.55% effective Oct 1.

Additional information regarding these loan programs and their recent changes can be found at www.nvrural.org and www.nvhousing.state.nv.us

Please let us know if we can be of any assistance in trying to wade through the in’s and out’s of these constantly changing programs.

Best wishes,
Lisa

Lisa Fleck
Sr. Loan Consultant
NMLS# 351370
100 N Arlington Avenue Suite 210
Reno, Nevada 89501
office: 775-824-3640 x121
mobile: 775-287-2444
email: teamfleck@summitfunding.net
website: http://www.summitfunding.net/EmployeeDetail.aspx?groupid=17&EmployeeID=18166&