Movement Mortgage, one of the nation’s largest purchase mortgage lenders, has launched a down payment assistance program for first-time homebuyers with limited funds available for a down payment. Qualifying borrowers may receive grants up to 3 percent of a home’s sales price and 97 percent conventional financing.
The Movement Assistance Program (M.A.P.) combines a non-repayable down payment grant provided by Movement Mortgage with a 30-year conventional loan. Qualified borrowers will be eligible for 97 percent financing with down payment assistance up to 3 percent in the form of a grant provided directly by Movement Mortgage. This grant is not required to be repaid and comes with no second loans, liens or promissory notes.
“M.A.P. will help more families become homeowners by providing assistance with the upfront costs of home buying,” Movement Mortgage Co-Founder and Chief Executive Casey Crawford says. “This is a program our entire Movement community takes great pride in offering. It’s one more way we are leading a Movement of Change in our industry and communities.”
M.A.P. is available for first-time homebuyers who meet specific income and asset criteria based on need and median income in their geography. It also provides access to job-loss insurance coverage for non-self-employed borrowers (borrower must opt in) for two years. The benefit covers up to six monthly mortgage payments due to involuntary unemployment at maximum monthly benefit of $1,500 ($9,000 total benefit over coverage period).
M.A.P. comes at a time when first-time homebuyers are making a renewed push into the marketplace. About 854,000 new-owner households were formed during the first quarter of 2017, which is more than twice the 365,000 new-renter households formed during the same three months, according to Census Bureau data. Real estate data firm Trulia said this marked the first time in a decade there were more first-time buyers than first-time renters.
However, many first-time buyers continue to list a down payment as a major obstacle to homeownership. M.A.P. will help consumers overcome the down-payment hurdle, benefit from homeownership education and have access to limited job-loss insurance.
Movement Mortgage is committed to improving home financing for Americans. The company serves buyers in 47 states with the digital EasyApp experience, an innovative goal to process loans in just seven days, and a full offering of conventional, VA, FHA, USDA, home equity, renovation and other mortgage loans.