1 Down

Conventional Grant Program

The Conventional Grant Program is a lender paid down payment assistance grant that allows income-qualified borrowers to put as little as 1% down and the lender will pay the lesser of 2% or $4,000 toward the down payment.

Borrower and Property Eligibility

  • Income limit - Total qualifying income must be less than 80% of area median income defined by Freddie Mac Home Possible Income and Property Eligibility Tool. 
  • Homeownership education required for all first-time homebuyers.
  • Borrower qualifies under Freddie Mac Home Possible guidelines with automated underwriting Accept/Eligible approval.
  • Minimum FICO score of 620
  • Property limited to site built single family homes, no manufactured homes.
  • 30 year fixed rate only.
  • Occupancy must be primary owner occupied, Non-occupant co-borrowers are not permitted.

Example 1: 

  1. Home with a purchase price of $180,000 in Salt Lake County.
  2. Income cap is $81,760 per year.
  3. Borrower’s qualifying annual income is $60,000 per year.
  4. 3% down of $180,000 is $5,400.
  5. Lender paid down payment assistance grant will be $3,600 (2%)
  6. Borrower pays $1,800 (1%) of the down payment.

Example 2: 

  1. Home with a purchase price of $200,000 in Salt Lake County.
  2. Income cap is $81,760 per year.
  3. Borrower’s qualifying annual income is $70,000 per year.
  4. 3% down of $200,000 is $6,000.
  5. Lender paid down payment assistance grant will be $4,000 (2%)
  6. Borrower pays $2,000 (1%) of the down payment.

Example 3:

  1. Home with a purchase price of $400,000 in Salt Lake County.
  2. Income cap is $81,760 per year.
  3. Borrower’s qualifying annual income is $80,000 per year.
  4. 3% down of $400,000 is $12,000.
  5. Lender paid down payment assistance grant will be $4,000 (Max Grant Amount)
  6. Borrower pays $8,000 of the down payment (2%)

 

Q and A

Q: What if the total qualifying income is greater than 80% of the area median income (AMI)?

A: Qualifying income over 80% AMI will disqualify the borrower from the Conventional Grant Program, however a 3% Down Payment is available to borrowers with income over 80% AMI as long as at least one borrower is considered a First-Time Homebuyer.

Q: Does the income cap consider all household income?

A: NO the Conventional Grant  Program is based on income used to qualify for the loan and does not consider other household income.