Down Payment Assistance Options

The following information was provided by First Bank and may change without notification. Please verify with the Housing Authority and the Lenders involved.

The H2O Program

The H2O (House to Home Ownership Program) enables the buyer to qualify for the the highest purchase price due to the fact that it has the highest loan amount, higher qualifying income, and no payment required. The H2O guidelines are as follows:

• Applicant must work in Summit County at least 30 hours per week.
• Household income must be less than $43,512 for one person, $49,728 for two, $55,944 for three, $62,160 for four, $67,133 for five, a family of six can make up to $72,106, seven $77,078, and $82,051 for eight.
• Applicant must attend a pre-homeownership counseling class.
• The home to be purchased must have a maximum price of $288,800; must be located in Summit County; must pass a minimum quality standard inspection by the Summit Housing Authority.

The H2O loan terms

• Maximum loan amount is 5% of purchase price.
• The minimum cash contribution from the borrower is $1,000.
• $150 application fee and $250 processing fee (financed).
• Term is 10 years.
• No monthly payment is required.
• If the home is sold within 2 years the owner pays 3% interest. If the home is sold after 2 years the interest rate is the % of appreciation divided by the number of years they have owned the home, max 11.5%.

Division of Housing Down Payment Assistance Program guidelines are as follows:

• Applicant must work in Summit County a minimum of 30 hrs per week
• Applicant must make less than $41,700 for one person, $47,700 for two people, $53,650 for three people, $59,600 for four people, $64,350 for five, and $69,150 for six people. The Income is verified by the lender.
• The applicant must attend a pre-homeownership counseling class. Maximum assets excluding “fixed assets” (car, jewelery, etc.) cannot exceed $35,000.
• The home to be purchased must be located in Summit County. It must pass a minimum quality housing inspection. There is no maximum purchase price. The home cannot be a Summit Housing Authority sponsored project such as Gibson Heights.

Loan Terms

Maximum loan amount is 8.5% of purchase price. The loan amount is reduced if they will have more than $5,000 in liquid assests left over after the closing. The minimum cash contribution is (the greater of) $1,000 or 1% of the purchase price. There is a $50 application fee. The loan is a fully amortized 20 year loan with a 3% fixed interest rate.

A third option is the Summit Housing Authority $5,000 Down Payment Assistance. The guidelines are the same as above except that they can make substantially more income and still qualify, asset limitation is $10,000 and the loan term is 5 years at a 3% interest rate with no monthly payment required. (Funds for this program have been substantially exhausted.)

Contact the Summit Housing Authority at 970-453-3555.