Down Payment Assistance Program Helps Families Become Homeowners
For many families, the dream of homeownership can feel out of reach, especially in the current housing market. But with a helping hand, that dream can become a reality. Marion County’s HOME Investment Partnerships Program has been doing just that, helping families into homes with through down payment assistance.
Across the country, and in Marion County, the cost of housing has proven to be a barrier to entry for many families struggling to scrape together a down payment.
“When you’re talking around the $400,000 mark for a starter home, saving up for a sizeable percentage as a down payment can be a huge roadblock to many families,” said Commissioner Kevin Cameron, Chair. “This program essentially will function to help families who can afford a mortgage, but who need that extra help with a down payment to become homeowners instead of renters.”
The HOME Program offers flexible assistance to bridge the gap between a bank’s loan approval and the price of a home. While it doesn't guarantee funding upfront, it can reserve funds to help an individual qualify for a loan. Once the bank approves a certain level of financing, prospective buyers receive a commitment letter of funds from the County, with funding up to $125,000 per family, depending on the gap between the loan and the value of the home. The program provides a secondary lien, meaning it takes a second position behind your primary mortgage.
Eligibility
To qualify for funding through the HOME Program, there are some requirements:
The property must be located within Marion County, but outside Salem city limits.
Your household income must be at or below 80% of the Area Median Income (AMI) set by HUD. The exact income limits depend on your family size.
You cannot have owned a home in the past three years.
Completing a homebuyer training course is mandatory. Dev Northwest can assist you with this requirement, even if you have a lower credit score.
The property you choose must meet HUD's housing quality standards to ensure its safety and livability.
The maximum price of the house can only be 95% or lower of the area median home price.
Already Making a Difference
The program is already making a difference for some Marion County families. Four families have successfully received down payment assistance, with six more approved for a down payment. There are an additional 34 applications currently in process.
Unfortunately, funds for this program are limited. There's currently $1.1 million available for the program, with an annual allocation estimated to be around $382,000. If you are interested and eligible for this program, we encourage you to apply sooner rather than later.
"We want to get as many individuals into homes as possible,” said Commissioner Danielle Bethell. “If you're a first-time buyer in Marion County and meet the eligibility requirements, I encourage you to reach out to Marion County Community Services and learn more about this program."
"Investing in our residents is key to a thriving Marion County,” said Commissioner Colm Willis. “This down payment assistance program is a smart investment that helps folks build a solid foundation for themselves and for future generations."
To apply, visit: https://bit.ly/MarionCoDPA.