Annie and Aaron made too much money for state DPA programs but had zero savings for down payment. We got them into a $535K home anyway.
The Situation
Annie had a 608 mid credit score. Aaron’s was a 624.
They made great income, but had devoted all extra cash towards paying down student loans.
They found a home they loved at $535,000 and wanted to make a move if possible.
The Challenge
MSHDA was off the table. They made over the $176,000 annual limit (in their county & family size) for MSHDA and the scores were too low.
They had about $7,500 in the bank, but not enough to cover the 3.5% down payment.
How We Structured It
We structured the deal as an FHA loan tied to a Chenoa DPA program. Chenoa provided a 2nd mortgage to fund the 3.5% down payment. (no income limits on this program)
Seller concessions covered the closing costs.
End result, zero-down for the buyers.
Why This Might Matter
When you've got buyers who make too much for state DPA but don't have savings for a down payment, they're stuck in an awkward spot. Good income, can handle the payment, but can't come up with the cash to close.
Chenoa is a repayable second mortgage (up to 5%) that works alongside FHA financing and has no income limits. Paired with seller concessions for closing costs, it can get buyers into a home with zero out of pocket.
Pattern to watch for:
Income is over state DPA limits (MSHDA, etc.)
Little to no savings for down payment
Decent credit, above a 600 is needed on this program
If you run into this scenario and it doesn't fit what you can offer, i’m happy to take a look and see if we can structure something that works.
Work With Me
Do you have a deal that doesn’t fit your credit policy but the client seems solid?
Reply to this email or call me at 616.298.2743 for a same-day answer.
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