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If you don't have all of the down payment to pay at one time, it's not a problem. This is how our "Down Payment Assistance" program works. Before you read this, note that these numbers are ONLY an example, and do not apply to any particular situation.
· Let's say that you want to purchase the home, but don't have all of the required down payment......we have options!
· Let’s use an example….let's say the required down payment is $7,000, but you only have $2,000, yet you would really like to purchase the home.
· Let’s say you and I discuss, and I agree that you could pay $2,000 towards the down payment now, go ahead and sign the Contract for Deed, and I take the home off the market so that no other potential buyer could buy it. By this doing this, your purchase is then secure……but you can’t move in just yet. Keep reading.
· Now let’s say that I agree to allow you to pay a minimum of $1,000 per month towards the down payment.
· Now, let’s say that I agree that once you pay a total of $5000 towards the down payment, we allow you to have the keys and move it.
· It would take you 3 months to reach that $5,000 goal. You would have paid $2,000 upfront, and 3 monthly payments of $1,000. Again, when you have paid $5,000 towards the down payment you will receive the keys and be able to move into the home. NOTE....there is still a $2,000 remaining balance on the down payment (which was $7,000 total).
· So now you have paid the minimum amount due towards the down payment that will allow you to move into the home ($5,000).
· Now, let's say for example that the monthly payment on the home is $699.00. In this example, you have a balance due on the down payment of $2,000. We will now reduce your down payment monthly fee to $400 per month. This would mean that you would be paying $1,099.00 per month ($699 + $400) for the first 5 monthly payments. After that time, the down payment will have been paid in full and your monthly payment will drop back to $699.00.
· So looking back at this example, the down payment required was $7,000, and you paid $2,000 upfront. You paid $1,000 per month for the next 3 months. At that time (3 months), you will have paid $5,000 towards the down payment, which earns you the keys and the ability to move in. Then, for the next 5 months you will have added $400 to your monthly payment which is going towards the remaining $2,000 owed on the down payment. At the end of these 4 months, the down payment will have been paid in full.
· Now, after these last 5 monthly payments occur, you will have paid the total down payment ($7,000), Now your monthly payment would drop back to only $699 per month from that point further.