How to Talk About Down Payment Assistance with Borrowers and Real Estate Agents

As a real estate agent, you’re responsible for getting the borrower approved for the best mortgage possible. Down payment assistance programs can be a great option to help buyers afford their dream home, but they can also be complicated to explain and discuss with borrowers and other real estate agents who aren’t familiar with them. This guide will help you explain down payment assistance programs in terms that your clients and fellow real estate agents will understand, while also explaining exactly how they work and answering some common questions about them.

What is PNB’s down payment assistance program?

PNB’s down payment assistance program allows buyers who meet certain qualifications to purchase a home while putting less money down. Here’s how it works: With PNB’s 20 percent down payment assistance program, qualified buyers can purchase a home while putting less than 20 percent down. In addition, they pay mortgage insurance which covers up to 15 percent of their loan amount at closing.

What does it mean for the borrower?

How does down payment assistance work? It’s a financial tool that allows homebuyers to enter or remain in homeownership without paying an exorbitant amount of cash at closing. Read on for more information about how down payment assistance programs work, as well as tips for getting started.

How can I help my client who qualifies for it?

If you’re a real estate agent working with first-time homebuyers, there are several sources of assistance available for borrowers. If a borrower has less than 20% to put toward their down payment and closing costs, they may qualify for something called down payment assistance. Unfortunately, many agents aren’t comfortable talking about it in meetings or phone calls, let alone knowing what type of down payment assistance is best.

What are the loan terms for this program?

While some down payment assistance programs require repayment after a certain number of years, PNB Home Loans offers assistance that can be amortized over 30 years, resulting in lower monthly payments. This is a huge benefit for borrowers who want to buy a home but can’t afford even a 20% down payment on their own. When talking about how down payment assistance works, it’s important to clarify that not all programs are created equal; ours is tailored for borrowers who have good credit and steady income.

Do you have any other programs for first-time homebuyers, such as no mortgage insurance?

In addition to providing down payment assistance, they offer no mortgage insurance on PNB Home Loans. Most lenders charge mortgage insurance on loans that are 20% or less of a home’s value. But if you use your PNB credit card when you make your purchase, you don’t have to worry about paying these fees. This can save buyers as much as hundreds of dollars every month! 

As a closing agent, one of your main jobs is to secure down payment assistance for borrowers. There are several good PNB Home Loan programs out there that can help close borrowers who have saved money in a savings account but don’t have enough for a down payment or closing costs. Some of these programs also include no-closing cost loans, so you may be able to find creative ways to structure deals where both borrower and seller are satisfied.

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