Down Payment Loan Makes New Home a Possibility
Monday, September 18, 2017
Jeff and Judy lived in a Sioux Falls apartment and had been planning to buy a home for years. They found a place they liked, and they could afford the monthly mortgage payment, but after years of increasing rent, it had been hard for them to save money for a down payment. Jeff’s disability and their fixed income further complicated the situation. So they approached GROW South Dakota.
The GROW SD loan officer connected Jeff and Judy with a down payment and closing cost loan, which provided funds to cover those costs. The result is that they now have a home with a mortgage payment that is less than their previous rental payments. “This will allow us to start saving again,” Jeff says, “at least enough for an emergency fund, and to establish equity in our home and ourselves.”
The down payment/closing cost loan is in the form of a zero-interest deferred second mortgage. This means they will owe no payments for the loan until their first mortgage is paid off, and the debt accrues no interest.
Jeff and Judy are thrilled with the service they received. The GROW SD loan officer “understood our situation immediately and, without delay, helped us through every step of the way! What a Godsend she was, is and I know will continue to be for those folks who face a similar situation such as we did. We cannot thank them enough for their help and guidance throughout the whole process.”
GROW SD’s down payment program recognizes that many people have the income necessary to make monthly loan payments but are not able to save money for a down payment or closing costs. The program provides support in the form of a zero-interest deferred mortgage, which partners with a first mortgage lender to fund the purchase. Different funding sources have varying income guidelines for borrowers. The application for the down payment/closing cost loan program can be found at GROW SD's website: www.growsd.org. Interested borrowers may also contact 605-698-7654.
GROW South Dakota is an Equal Opportunity Organization.
Category: Success Stories