Down Payment Assistance

Down Payment Assistance (DPA)

Understanding Down Payment

When you are in the process of buying a house, most likely you’ll have to make a down payment on the purchase, which is the amount you’re not financing with a mortgage.

Home down payment is simply the part of a home’s purchase price you pay upfront and does not come from a mortgage lender via a loan. Mortgage loans require the homebuyer to pay a portion of the home purchase price at closing. This “down payment” amount varies based on the lender and the loan product you select (FHA, VA, Conventional, or a lender’s in-house loan, typically called a “portfolio product”).

Understanding DPA

Down payment assistance (DPA) programs can be administered by a local or state housing authority, a nonprofit organization, or directly through your lender. They provide a set amount of money to qualified homebuyers. Homebuyers, who meet the program qualifications and requirements, can use the money to cover their down payment or closing costs.

Below you will find a summary of all assistance programs available through NeighborWorks Columbus

Keep in mind that each program is different and has different program qualifications and requirements. See a side-by-side comparison of all NeighborWorks Columbus-related programs: here.

NeighborWorks Columbus FHLB of Atlanta DPA Program

• This DPA Program provides between $7,500-$10,000 in down payment assistance to qualifying homebuyers with a household income of less than 80% of area median income.  These funds can be used to purchase any existing single family home. This program is affiliated with the Federal Home Loan Bank of Atlanta. 

HOME PURCHASE PAIRED WITH DPA ​

• HOME – The Federal HOME program provides homebuyer assistance strictly based upon the borrower’s need and amounts vary depending on the jurisdiction. Homebuyer’s household income cannot exceed 80% of area median income for this program. NeighborWorks Columbus has been selected to provide home sales with down payment assistance in the City of Columbus.

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SPECIAL INITIATIVES –

• Aflac Lender Referral Program Description – As a corporate partner in community revitalization with the NeighborWorks® Columbus, AFLAC has provided funds to NeighborWorks® Columbus to be awarded to AFLAC employees for the purchase of a home. 

To be eligible for this employer-assisted down payment grant,

• AFLAC employees must complete the NeighborWorks® Columbus online homebuyer education,
  • AFLAC employees who choose to purchase a home located in a NeighborWorks® Columbus revitalization neighborhood (East Wynton and Baelwood) receive a grant award of $5,000.00. 
  • AFLAC employees who purchase a home not located in a NeighborWorks® Columbus neighborhood receive a grant of $1,000.00. 

The funds will be disbursed at closing and do not have to be repaid. These funds are gift funds therefore no lien will be placed on the property.

• *Hallock Soldiers Fund Down Payment Assistance – Through the Hallock Soldiers Fund grant, NeighborWorks® Columbus will provide potential homeowners with a deferred payment subordinate mortgage for down payment, closing costs and prepaid expenses associated with their home purchase up to $5,000.

Eligible borrowers include any man or woman who has served in the past or is currently serving in the Armed Services with a household income of 80% of AMI based on household size. Participants are required to attend an 8-hour homebuyer education class by a HUD-approved counseling agency. This program is for first-time homebuyers only.

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Eligible Properties including any new or existing single-family house may be eligible within the states of Georgia and Alabama.

NeighborWorks Columbus-FHLBank Atlanta DPA Program

AS OF 3/7/2022 – APPLICATIONS ARE NOW OPEN

FUNDING AVAILABILITY

The Source of funding for this program is the Federal Home Loan Bank of Atlanta’s AHP set-aside program. As a member institution, NWC has access to up to $500,000 in the 2022 funding year. 

• Currently available to NeighborWorks Columbus: $500,000 (3/7)
• Currently pool available: $7,508,641.24 (3/7)

To apply online click here.