Orange County Down Payment Assistant Q & A

FREQUENTLY ASKED QUESTIONS

Q:         What is the maximum sales price?

A:         $300,000.

Q:         What is the maximum amount of assistance?

A:         Very Low-Income Households    - $45,000

Low Income Households            - $35,000

Moderate Income Households    - $20,000

Q:         Is there a lien placed on the home?

A:         Yes, there is a 10-year lien placed on the home.

Q:         What is minimum credit score?

A:         620 middle credit score.

Q:         Are discount points still ineligible?

A:         Discount points are eligible. Points and lender fees are capped at 2.5% of the loan amount.

Q:         Did the DTI change?

A:         No, it is still 45% on the back end.

Q:         What debts are included in the DTI calculation?

A:         All debt obligations with more than 10 months owed on the credit report are included.

Q:         Are there any other credit report changes?

A:         Yes, we no longer require three (3) trade lines.

Q:         Can a buyer use any counseling agency?

A:         Yes, as long as the counseling agency is HUD approved, and the workshop is 8 hours in person. However, we highly recommend using one of the counseling agencies contracted by our DPA Program; those agencies are listed on the Flyer.

Q:         Can the Fannie Mae/Freddie Mac verification forms be used?

A:         Yes, but the new verification forms are issued by the grant program and will greatly reduce Orange County processing time and limit potential calculation issues.

Q:         What if the employer or bank will not complete the verification form? For example, some employers use The Work Number.

A:         Please submit whatever document is provided. We will accept income verification forms from other third-party sources (i.e. The Work Number, Social Security Benefit Letter, Child Support Enforcement Payment History).

Q:         How long is does it take to get approved?

A:         Commitment Letters are generally offered 3 – 4 weeks from the date of application, and an additional 15 days to secure a check. We do not have the ability to wire funds.

Thank you for taking the time to read this information. 

Should you still have questions, please give me a call at 321-689-2420 and ask for Glenda Lee.