Gwinnett County HOMEStretch Program
November 14th, 2008 Categories: Financing
I was recently talking with a lender friend of mine, Jeff Ruehman with MetLife Home Loans, who let me know of a program that Gwinnett County has initiated to help local home buyers purchase a new home. The program is called the Gwinnett County HOMEStretch Down Payment Assistance Program.
Honestly I had no idea this was in place and think it is a great way to help get buyers into homes. Here are some of the details:
BACKGROUND:
This program is designed to meet a critical financing need in the home buyer marketplace by providing low-and moderate-income homebuyers the opportunity to participate in the American Dream of homeownership. The Gwinnett Community Development Program Office developed a first-time homebuyer’s assistance program that provides a deferred payment loan for down payment, closing costs, and/or pre-paid expenses. The program, now called HOMEStretch was initiated in 1993. The Gwinnett County Community Development Program has responsibility for administering the Gwinnett County HOMEStretch Down Payment Assistance Program.
Applicant must submit to the office of the Gwinnett County HOMEStretch Down Payment Assistance Progam: (1) Certificate of Completion of Pre-Purchase Mortgage Counseling at a HUD Certified Housing Counseling Organization, (2) Pre-approval of fixed rate mortgage from lender (3) Completed pre-application form. (4) Application will be processed by Gwinnett County HOMEStretch Down Payment Assistance Program.
PROGRAM DESCRIPTION
Eligible first-time homebuyers may receive loans that have deferred payment and zero interest (“soft second” mortgages) for down payment, closing costs and/or pre-paids, of up to $7,500. This second mortgage is designed to work with first mortgages such as the Fannie Mae Community Home Buyer program, and other private conventional loans where appropriate. Property must be located in Gwinnett County. First mortgage loan is required to be a fixed rate mortgage. Eligible homes must be built after 1977 and the home value ceiling is $200,000. Gwinnett County is the Grantee of the HOMEStretch Down Payment Assistance Security Deed. Hazard insurance (all risk) and title insurance(s) must include the 2nd mortgage agency (HOMEStretch) as an additional insured value of $7,500 and 5 year period.
The HOMEStretch loan product is decreased at a rate of 20% of the original principal amount after twelve months anniversary date of purchase and an additional 20% of the original principal amount each year thereafter. The loan is satisfied after the homeowner has occupied the home as the principal residence for five years. However the loan is to be paid in full if one of the following occurs within the first 59 months of the loan: 1) original borrower transfers the property, 2) borrower no longer uses the property as his/her primary residence or, 3) first mortgage with primary lender is refinanced (cash out) or satisfied.
The Gwinnett County Community Development Program reserves the right to make exceptions to certain policies contained herein on a case-by-case basis provided they are not in violation of local, state, or federal laws and regulations.
I was just informed there is no funds available. have you heard the same thing?.
thanks