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EPM DOWN-PAYMENT ASSISTANCE PROGRAM
First-time homebuyers and loan officers. Have you hear of EPM DOWN-PAYMENT ASSISTANCE PROGRAM? Equity Prime Mortgage has a forgiveable down-payment assistance program on FHA loans where the down payment of 3.5% is covered as a second mortgage but it is forgiveable after six months. What does forgiveable mean on DPA programs? Forgiveable means that after a certain period of time, if you sell the house or you refinance out of the FHA EPM DPA loan, you do not have to pay the DPA loan of the 3.5% back. The maximum debt-to-income ratio is 48.99% front-end and 48.99% back-end. The EPM DOWN-PAYMENT ASSISTANCE PROGRAM is borrower paid transaction. Therefore, you need to get a 6% seller concession for you to get into a house with no money down and with no closing costs or little closing costs. In most cases, there is no down payment or closing costs. The EPM DPA Mortgage Program is availble on FHA loans in standard areas and high-cost counties like many counties in California. Here is an article I wrote about the EPM Down Payment Program. People that qualify are first-time homebuyers, homebuyers who are first-responders, teachers, veterans, and professionals in the medical field, and homebuyers who earn a certain amount of income based on their county:
https://gustancho.com/down-payment-assistance-mortgage/
gustancho.com
EPM Empowered Down Payment Assistance Mortgage Program
There are recoverable and non-recoverable Down Payment Assistance Mortgage for Homebuyers is offered at Gustan Cho Associates
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4 Replies
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WOW!!!! Never heard of the EPM DPA Program.
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Please explain the first-time homebuyers’ down payment assistance program enabled by Equity Prime Mortgage. I never heard of the EPM DOWN-PAYMENT ASSISTANCE PROGRAM. Let’s talk about whether or not Equity Prime Mortgage has a forgivable down-payment assistance program on FHA loans where the down payment of 3.5% is covered as a second mortgage, but it is forgivable after six months. What does forgivable mean in DPA programs? Does this mean that after some set amount of time, if you sell the house or refinance out of the FHA EPM DPA loan, you do not have to pay the DPA loan of 3.5% back? Can you give me seven case scenarios on how the EPM DPA PROGRAM WORKS? WHO CAN GET THE DPA LOAN PROGRAM.
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The purpose of this post is to analyze down payment assistance programs. It should be noted that these programs can vary widely between lenders and states. For the most current official information on DPA programs from EPM, visit Gustan Cho Associates. Here’s a general idea:
Forgivable DPA Programs—FHA loan programs that are seller-paid and require no down payment from the home buyer. Seller concessions can cover closing costs—borrower-paid transaction at a par rate of 7.75% for the homebuyer.
In this context, “forgivable” means that certain conditions (usually living in the house for some time) must be met. You don’t have to pay back any money received as assistance. Each program has its own rules.
Typical Structure of the DPA Program:
Down payment assistance programs may provide funds through second mortgages or grants for down payments; some may forgive over time, while others must be repaid upon the sale or refinance of the home.
Eligibility for DPA Programs:
- First-time homebuyer status.
- Income limits.
- Credit score requirements.
- Property Location.
- Occupancy requirements (usually must be owner-occupied).
- Completion of homebuyer education courses.
Seven General DPA Scenarios:
Here are some examples of different types of DPAs besides the Equity Prime Mortgage DPA Program:
- Full forgiveness after six months of occupying the property.
- Gradual forgiveness on general other DPA mortgage programs (e.g., 20% forgiven each year over five years).
- Repayment is required if sold within a certain period.
- Interest-free loan repaid at sale or refinance.
- Low-interest loan with monthly payments.
- Matched savings program (e.g., $3 match for every $1 saved).
- Grant program with no repayment required.
Please note: These scenarios are general and may not reflect EPM’s offerings. To receive accurate and current information about Equity Mortgage’s down payment assistance program, including eligibility requirements and terms, please get in touch with Gustan Cho Associates directly at support@gcaforums.com or visit their official website.
Also, keep in mind that DPAs change over time. Funding availability and locations can affect terms. Always check with the lender or program administrator for the most recent details before making any decisions.
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Equity Prime Mortgage (EPM)’s EPM Down Payment Assistance (DPA) Program was created to help first-time homebuyers by providing them with a second mortgage that covers the 3.5% down payment required for FHA loans. This second mortgage can be forgiven if conditions are met within six months. The second mortgage is forgiven when the borrower cannot repay the down payment assistance. Seven case scenarios below illustrate how it works and who qualifies.
Case Scenarios
First-Time Homebuyer Sells the Home After 7 Months
Scenario: A first-time homebuyer uses the EPM DPA program to cover the 3.5% down payment. They sell it after living in the home for seven months.
Outcome: If this house purchase plan takes over half a year, namely six months, 3.5 percent (3.5%) of DPAs will become forgivable. This implies that homeowners do not need repayments on down payment help when selling their houses or when they refinance their FHA loans into conventional mortgage loans.
Homebuyer Refinances After 8 Months
Scenario: A borrower buys a home using an FHA loan, which is refinanced into a conventional loan with lower interest rates after eight months.
Outcome: Since over half a year passed under this house purchase plan, the 3.5 percent (3.5%) of DPAs can be forgiven. So even if they were taken as second mortgages, there would be no need to repay them!
EPM DPA Program Eligibility
Typically, the following categories of first-time homebuyers qualify for the EPM DPA program:
Initial Homebuyer: Commonly defined as someone who has not owned a house in the past three years.
Income Requirements: Borrowers must meet earnings limits, which may be based on Area Median Income (AMI) or other criteria set forth by relevant authorities.
Credit Score: Generally speaking, people seeking this scheme need a credit score of at least the minimum acceptable for an FHA loan. The minimum credit score requirement for the EPM DPM Program is 620.
FHA Loan Requirements: The applicant must be eligible for an FHA loan and meet debt-to-income ratios and employment history, among other things considered during underwriting.
Principal Residence: The buyer should occupy the property as their main dwelling place.
Type of Property: Single-family homes, townhomes, and certain approved condos are usually eligible units under this plan.
The EPM DPA program becomes very attractive, especially when seen as a chance for those purchasing their first houses who cannot afford down payments because they can be forgiven.
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