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The Real Tea
The Real Tea
Get with the PROGRAM! ft. Jenny Cox
Jenny Cox of Guild Mortgage joins to discuss down payment assistance programs. Want to learn more about loans you could potentially qualify for? Listen now as we spill the tea on all sorts of programs!
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Want more Jenny? Find her here:
https://branches.guildmortgage.com/nv/henderson/jenny-cox-515-hdjc.html
Instagram: @jennyjune99
Facebook: @jennifercmlo
Welcome to The Real Tea podcast! We're Jillian and Catherine Hyde, Vegas dwellers and real estate sellers. Want the real tea on realty? Let us pour you a cup. Learn all about the ins and outs of Las Vegas and how to set yourself up for financial success. Thanks for tuning in. Let's sip some tea. Welcome back to The Real Tea. Today's a very special day because we are getting with the program. I am joined with Jenny Cox of Guild Mortgage who's going to walk us through some of her unique down payment assistance programs. Welcome, Jenny.
Jenny Cox :Thank you.
Catherine Hyde :Thank you, Jillian.
Jillian Hyde :And Catherine is here as well!
Catherine Hyde :I'm always forgotten.
Jillian Hyde :Okay, so Jenny, tell us a little bit about yourself. You obviously are a loan officer.
Catherine Hyde :Yes. Yeah. So I am a loan officer. I am with guild mortgage and I have been a loan officer for about five years now.
Jillian Hyde :Awesome. So as we have gathered from these various podcast episodes, loans are not one size fits all. And there are unique programs people can qualify for based on occupation, location, credit.
Jenny Cox :Right, exactly.
Jillian Hyde :So tell us a little bit about the Home is Possible program. I know it's fairly unique to you.
Jenny Cox :Sure, sure. So homeless possible is a statewide program. If you are buying a primary residence, you can look at using the home as possible program and you can get up to 5% grant funds from them. There's different repayment structures on that. It just depends on which one you choose. Some are forgiven after three years. Others take a full 30 years to forgive the funds. But it's a pretty cool program because it will take care of the entire downpayment and some of the closing costs.
Catherine Hyde :And this is an FHA or conventional or both.
Jenny Cox :Oh, good question. So you can go VA, USDA, FHA, or conventional. So if you take the 5% assistance and you're on a three and a half percent FHA what the one and a half is for closing costs. Yeah, they want to have would go towards closing costs. Now home is possible does not offer 5% grant funds for FHA Home At Last does. If you're going conventional, though, is where you could get the 5% grant funds home as possible. And 3% down making the other 2% go to closing costs.
Jillian Hyde :Nice. Okay, and so that one seems like fairly open to anyone.
Jenny Cox :Hmm. Yeah, the majority of people can qualify for that. Actually, the income limits are pretty high 98,500. But what I find if you if you get the occasional person that makes over the income limits for that program, we try to put them at home at last home at last, you can go all the way up to 135,000 for all combined income. Yeah, so it's pretty cool.
Jillian Hyde :Awesome. And so let's get into the more specific programs, there are certain programs that based on your job you can qualify for what are those like?
Jenny Cox :Oh, good question. Okay. So we have the culinary downpayment assistance program where you can get up to $20,000 to go towards your down payment and your closing costs. With that particular program, those funds are never forgiven. It's a silent second. That's It stays on the loan, so you don't pay any interest on it. And you have to pay it back. If you go to sell, most of the time, if you refinance, they will subordinate the loan, which is pretty cool. Because, again, it's a silent second, so you're not paying any interest on it.
Catherine Hyde :Oh and you never pay it back unless you sell the house.
Jenny Cox :Yes, exactly.
Catherine Hyde :Okay. And oh, okay. And that will cover our down payment and closing costs as well.
Jenny Cox :So it depends on which loan type that you choose. If it's conventional, then you have to come in with your own 1% in any non allowable, so I'd say about an extra 1200 dollars. If it's FHA, you have to come up with your own three and a half percent down and then the culinary program will take care of the closing costs. So I usually try to go conventional when I can. One of the other cool things about that program is it doesn't come with a higher interest rate. Which is so cool.
Catherine Hyde :That is really cool. So what is what is the higher interest rate on the other ones on the home as possible?
Jenny Cox :Yes. So Home is Possible and Home At Last have different rates. And it depends on how much assistance you get and what program you go with. You could go as low as 2.875 getting a 2% grant with FHA as of today, or all the way up to 5.625 going conventional getting 5% grant funds as of today, but it changes on a daily basis. And what about if you just need help to cover the closing? Excuse me, the downpayment? What if we're able to negotiate for the seller to cover all the costs and it's just an average FHA $330,000 house where we just need a down payment? We just need that three and a half. Yeah.
Catherine Hyde :How much is that? Right? How much is that rate?
Jenny Cox :That would be 3.625%. This morning when I looked it up, but it changes on a daily basis with whatever the markets doing. So great. Okay. Yeah, it's awesome. And I've had instances where clients have gotten their earnest money deposit back because the age I was so awesome to be able to get the seller to contribute.
Catherine Hyde :Very good. We can do that.
Jenny Cox :No, you're awesome.
Jillian Hyde :So besides just being a culinary person in that field, there's also homes possible for teachers.
Jenny Cox :Sure. Yeah.
Jillian Hyde :And what does that entail?
Jenny Cox :That's a really cool program. One of the things I like about that one is, it doesn't come with a higher interest rate. So you get a below market rate. It has to be a government loan. Okay, so that means FHA, VA USDA for those you get 7500, after five years does not need to be repaid. And they prorate it right. So every, every month that you make a payment, they forgive part of that amount that you're getting from the 7500 can go into more closing.
Catherine Hyde :But that's only teachers, not not CCSD employees.
Jenny Cox :No Good question. Yeah. So it's a public charter school teachers, kindergarten through 12th grade,
Catherine Hyde :their job title must say teacher,
Jenny Cox :it must say, oh they ask for your teacher's license as well to verify that you are
Catherine Hyde :Wow,
Jenny Cox :yeah. No no principals I had a principal that wanted to do it once and we had them a regular home as possible.
Catherine Hyde :Well, that's not bad. No, there are alternatives.
Jenny Cox :Sure.
Catherine Hyde :Okay. So what else do we have there's military programs right
Jenny Cox :there is there's a there's a VA home for heroes. So if you want to get a below market interest rate, you can do that and get no assistance. But you can pair a regular home as possible with a VA loan too. So if you just need help with you know 2% of the closing costs your your rates not going to be too high that helps with the closing costs and essentially not pay a lot to look to buy a house being VA because your your down payments gonna be zero anyway, for VA. There's a home for heroes limit you to a geographical area. an underserved area. Nope. Yeah, no, no, it doesn't. Good. Yeah. Did you want to talk about the one last one?
Catherine Hyde :WISH?
Jenny Cox :Sure, yeah. So this is one of my favorite Yeah, because it helps a lot of people that wouldn't necessarily be able to buy without the program. It's for really low income, so 80% ami and below it goes off household size, but every dollar that you put down, they will match it up to 40 up up to $4. So they will give you 22,000 if you put down 5500 Oh, wow. And that is downpayment assistance matching.
Catherine Hyde :So what what does that mean in terms of house purchase power,
Jenny Cox :purchasing power so that their their requirements for debt to income ratio are a little bit more strict for that program. They have to be 3643. That might not mean a lot to you guys, but I look at those numbers when you do your application. So you just want someone who has income and very little monthly that like no car payments or minimal credit card debts, that sort of thing. Okay. And they and they fit into that. So the other cool thing is they don't have to have the 640 credit score, like the other programs, this one comes with a 600 credit score higher, right? And so you're able to get people that they just wouldn't be able to qualify for any other program. That's really good.
Catherine Hyde :So somebody who has a minimum 600 score makes less than 80,000 a year and has a little bit of cash too. Half you match their funds.
Jenny Cox :So it's not necessarily 80,000 it's 80% of the area median income. And so it's going to go up household size. If you have a big household, then the income limits go up. If it's just one person, then right now the HUD limits are around 39,000 that you can make yourself okay. The more people you have in your family, the higher that becomes but it is household income. So whoever is working that sub age in the house gets added.
Catherine Hyde :Great. Okay,
Jillian Hyde :awesome. That's definitely unique and it obviously shows that regardless of situation, circumstance, whatever you're doing, that you can qualify for a loan and get some pretty good opportunities with it, which is very unique. And so let's just talk general because these programs are awesome. How can you prep for a program?
Jenny Cox :Oh gosh. So usually I, the way I like to do it is get someone's complete application together, run credit, get their income, and then put them in whatever program is going to work for them. And if they're not where they need to be to get there, I will give them a plan, whether it's one month, six months, a year, however long it's going to take, we let them know, okay, this is what you need to do to get where you need to be, whether it's more employment history, or more income or paying off debts or getting credit up.
Jillian Hyde :That's awesome. And it's obviously all about strategy. And obviously, coming to an expert like Jenny, will get you in the best situation possible. So that's really good to hear. So I think that's all for the programs, right or is there anything else you want to mention?
Jenny Cox :No, I think that's that sums up what's available in Nevada at the moment, no change there. Changes to different programs that come available and I try to learn as many as I can. So if there's anything else that comes up, we'll put them in that program instead, if it works.
Catherine Hyde :Fantastic. Yeah, I think, as I say, every single episode, I think it's just research and going to professionals that can advise you, because this is, I can see, I mean, I'm looking at a piece of paper right now, there's at least six programs that have pretty general outlines. And it's a little bit tough for us to select one of those. That's her job, she can advise you, when she has all of the information in front of her. You know, it's like a puzzle, and she's good.
Jillian Hyde :And so if any of these programs that we have talked about, have piqued your interest, you will find Jenny's contact info and all of her socials linked in our description. And Jenny is one of our preferred lenders. So we do a lot of business with her. So Jenny will most definitely be back on the show.
Jenny Cox :Yay!
Jillian Hyde :And yeah. Thanks for joining us, Jenny.
Jenny Cox :Thanks for having me.
Jillian Hyde :Thank you for listening to today's podcast! Want more Real Tea? Hit subscribe and leave us a review! Check out Hyde Real Estate .com for more real estate opportunities and as always, stay thirsty!