First Home Mortgage is excited to roll out a new program to assist first-time homebuyers, community partners and veterans with down payment and closing cost assistance.
The FHLB program provides loans up to $7,500 to homebuyers that can be used towards the down payment and/or closing costs of their new home. These loans are forgivable after 5 years, meaning no repayment is necessary! There are 3 separate programs available:
First-Time Homebuyer Product– Maximum loan assistance of $5,000, minimum borrower contribution of $1,000.
Community Partners Product– Maximum loan assistance of $7,500, minimum borrower contribution of $1,000, non-first-time homebuyers are eligible, available to law enforcement officers, educators, health care workers, firefighters and first responders.
Veterans Purchase Product– Maximum loan assistance of $7,500, no minimum borrower contribution, non-first-time homebuyers are eligible, available to homebuyers who are currently serving, or have served in the U.S. military, their spouse or their surviving spouse.
These programs are only available on conventional, fixed-rate purchase loans. Funds are provided on a first come, first-served basis until funds are depleted. There is mandatory Homebuying Counseling for borrowers.
Reach out to your Loan Officer to learn more!
The week of January 27, 2019, the Federal Reserve had their 2-day rate-setting meeting and decided not to raise interest rates. Although the Fed does not directly affect long-term mortgage rates, this is a positive outcome for borrowers looking to purchase a new home or refinance to a lower fixed-rate.
Mortgage interest rates have been slowly declining over the last few months which is a good sign for buyers. The 30-year fixed rate mortgage average was 4.45%, having stayed at that level for three straight weeks, and the Fed’s choice to leave interest rates unchanged could keep mortgage rates steady.* Lower interest rates could mean lower monthly down payments for homebuyers, and less total interest spent over the life of the loan.
The Federal Open Market Committee (FOMC), which decides the Fed’s rate policy, said in its statement, “In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.” **
It is hard to predict what will happen in the upcoming months, but for now, things are looking bright for homebuyers. Please reach out to any of our Loan Officers if you have any questions, we are always here to help.
*Passy, J. (January 31, 2019) So the Fed left interest rates unchanged, but what does that mean for you? https://www.marketwatch.com/story/5-things-consumers-should-watch-for-now-that-the-fed-has-not-raised-rates-2019-01-30
**Foster, S (January 30,2019) A ‘patient’ Federal Reserve signals it’s done raising interest rates — for now. https://www.bankrate.com/banking/federal-reserve/fomc-recap/