To use or Not to use DownPayment assistance ?

[Michael Dunn]

Good evening,

I am in the process of getting a contractor and purchasing my first rental,

and I am trying to decide if I should use the Down Payment assistance program for my state Mississippi

And what are the pros and the cons of using it vs not using it?

I'm on a bit of a time crunch, in that I have to decide soon, on whether to use the assistance or to pass on it

Quick side note,.... I really could use the extra money I'd save from not having to use my own money for the down payment

And this will be an FHA loan , with the closing and pre-paids all rolled into the loan ( I have already discussed this with the seller )

Thanks for any input and help - Michael

[Kendall Arnold]

Michael,

Like what @Curt Davis, tell your lender EXACTLY what you're trying to do.  The goal of down payment assistance programs is to allow home buyers the opportunity to get into a home or to get into a better home than they wouldn't have otherwise.  In most cases, there will be a deed restriction preventing the buyer from selling or using the property as an investment.  If you do, you could face hefty fines, the down payment assistance amount being paid back or worse.  Sometimes you may not see that deed restriction until the closing table so check and double check with the lender AND the office that is offering the down payment assistance.