There are not very many ways to purchase a home without having a down payment. Two of them that I have discussed recently are the VA Guaranteed Home Loan Program and the USDA Rural Guarantee Loan Program. However, there is another no money down program available for those that qualify. It is strictly for low to moderate income first time home buyers. This program is the Springfield Home Ownership Program or SHOP. I recently posted information about this program on my FHA website, http://fhaloansoregon.com. Here it is:

Springfield Home Ownership Program (SHOP) Available

Author: fchamberlin  //  Category: $8000 tax credit, FHA 203b, FHA Mortgage Loans, First Time Home Buyer, Government Loans, Mortgage Loans

The City of Springfield administers a program to help low to moderate income purchasers get into their first home. It is called SHOP which stands for Springfield Home Ownership Program. This assistance program was created to encourage home ownership in Springfield by assisting low income residents with their first-time home purchase. Use of this program makes 100% purchases a possibility.

The Springfield home ownership program is designed to help first time home buyers with the down payment and closing costs in their purchase. A $10,000 interest free, payment free second mortgage is available for this purpose. The loan is accepted by FHA as a viable method of obtaining down payment money and is also accepted on some conforming products.

Prospective SHOP recipients are required to complete The ABC’s of Homebuying seminar. The course is designed to help you decide if buying a home is right for you and to understand the home buying process. The class is presented by NEDCO (Neighborhood Economic Development Corporation) and taught by experienced volunteers. The class is generally scheduled for one Saturday each month. Please check NEDCO for details.

Basically, the rules are pretty simple. First, the buyer must qualify based on income, currently from $31,100 to $51,500, depending on family size. Next, you must be pre-approved for a loan program that will accept this form of down payment and closing cost assistance. SHOP most often works best with an FHA loan, but I have also used it with a VA loan. The conventional loans are a bit harder, but can be done if the credit is good. It may or may not work with an FHA 203k streamline. The FHA program will accept SHOP but SHOP might not accept the repair option.

Then, find the house that suits you. If you need a Realtor, I am more than happy to recommend one.  There are housing requirements. For instance, it must be owner occupied or vacant, unless you are renting it. The program funding these loans does not want to force current renters out on the street. SHOP has funds at this time, but that is subject to change as the funds are used. However, it appears unlikely that the Springfield program will run out of money. Here is the link to SHOP.  Please note the list of lenders is dramatically out of date. A lot of the lenders on the list don’t exist any longer. We, Alpine Mortgage Planning, are approved to work with the program.

Buying a home is a major step in anyone’s life. That is one of the reasons the program requires the ABC’s of Homebuying seminar. It is a great program for anyone to partake, even if you aren’t applying for one of these loans.

 These programs are funded with money from HUD and are excellent ways to help first time home buyers. With the elimination of the Down Payment Assistance (DPA) programs, we need to find every way possible to help our new buyers in this market place.

One interesting side note, if the buyers have a non occupant co-buyer on an FHA loan, the co-buyer can help the buyer qualify (income) for the primary loan but that income is not counted for qualifying for the secondary loan. Additionally, all household income is counted when determining if someone qualifies for the no interest loan. There are, as always, some exceptions. I am always here to answer questions. Also, this program requires an investment of $1,500 from the buyer. This can be a gift or buyer paid closing costs. Contact me at 541-342-7576 or fchamberlin@alpinemc.com for more information. Just a side note, the Springfield program is only available for Springfield properties. Eugene has a similar program, but is current out of funds. This can change.  Another nice thing, is that if you qualify for the program, you also qualify for the $8,000 first time home buyers tax credit.

This program is exceptional for helping people that can afford the payments for their own home but have not been able to save the money for down payment. It is one of the few down payment assistance programs in the market place today. Please let me know if you need assistance as a first time home buyer.

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