Has the dream of homeownership seemed out of reach because of steep down payments? What if we told you that you could purchase your dream home with just $1,000 down? This game-changing opportunity is now available through the 2024 Affordable Housing Program (AHP) Homeownership Set-Aside Program. At Federal Hill Mortgage, we are excited to offer this program to first-time homebuyers and community heroes. Learn more about this incredible opportunity and how it can help you achieve your dream of homeownership.
What is the AHP Homeownership Set-Aside Program?
The AHP Homeownership Set-Aside Program, funded by FHLB Atlanta, is designed to support individuals and families in achieving their dream of homeownership with significantly lower upfront costs. This program offers a forgivable grant of $12,500 or $15,000, aimed at covering down payment and closing costs, making it easier than ever to buy a home.
Eligibility and Benefits
To be eligible for this incredible program, applicants need a credit score of 640 or above and must meet conventional loan approval standards. Income limits apply but vary by county, ensuring the program is accessible to those who need it most, including educators, law enforcement officers, healthcare workers, veterans, and military members and their spouses.
Navigating the Numbers: How to Buy a Home for $1,000 Down
Imagine you’re a first-time homebuyer in Maryland. You’ve come across the opportunity of a lifetime: the chance to buy your home with significant financial support from the 2024 Affordable Housing Program (AHP) Homeownership Set-Aside Program. Here’s how the math works out, making homeownership not just a dream but a reality:
The Costs Breakdown
- Home Price: For our example, let’s say the home you’re looking to purchase is priced at $215,000.
- Down Payment with an FHA Loan: Traditionally, a 20% down payment on a $200,000 home would be $40,000—a daunting figure for many. But with an FHA loan, for instance, you could be looking at a down payment as low as 3.5%, which would be $7,000.
- Closing Costs: Closing costs in Maryland can range from 2% to 5% of the home’s purchase price. On a $200,000 home, that’s $4,000 to $10,000. For simplicity, let’s use the midpoint of 3.5%, or $7,000.
- Total Initial Costs: Adding the down payment and closing costs together, you’re facing an initial cost of $14,000.
Applying the AHP Grant Funds
Now, introduce the AHP Homeownership Set-Aside Program’s grant of $12,500 into the equation.
- Grant Applied: You apply the $12,500 grant towards the total initial costs of $14,000.
- Your Contribution: With the grant applied, you’re left with with exactly $1,500 to cover. However, considering the program requires you to only contribute $1,000 out of pocket, this means the remaining $500 could potentially be covered by additional negotiations, seller concessions, or other financial assistance programs you qualify for.
The Outcome
After applying the AHP grant and your $1,000 minimum buyer contribution, you’re able to move forward with the purchase of your $200,000 home in Maryland. The seemingly insurmountable barrier of down payment and closing costs has been significantly reduced, turning your homeownership dream into an achievable goal.
What This Means for You
This tailored scenario not only highlights the direct impact of the AHP Homeownership Set-Aside Program but also underscores the importance of exploring available assistance programs that can help bridge the financial gap between you and your new home. It showcases how, with the right support and resources, the path to homeownership is accessible, even with minimal personal savings.
By thoughtfully applying the grant and leveraging negotiation skills, the dream of homeownership isn’t just a possibility—it’s your new reality.
How You Can Apply
Don’t let the opportunity to own your home with just $1,000 down pass you by. Whether you’re a first-time homebuyer or a community hero, the AHP Homeownership Set-Aside Program could be your key to homeownership.
Take the Next Step
Apply or check your eligibility today through Federal Hill Mortgage’s AHP Eligibility Form. Learn more about the program at our dedicated AHP Program page, or reach out to us directly at +1 (800) 551-9198. Our team at Federal Hill Mortgage is here to guide you every step of the way.
Check Your Eligibility In Just Minutes.
Secure Your Grant Before It's Too Late!
If you are interested in checking your eligibility for this program, you can apply by filling out the AHP Eligibility Form found at the link below. This form will help determine if you qualify for the grant and can help you take a significant step towards homeownership with minimal out-of-pocket expenses.
Check My Eligibility
