Its back! First-time Homebuyers Program
Great news for first-time homebuyers, the NLHC announced their Downpayment Assistance Program has returned to NL this year. For anyone interested in applying for the downpayment assistance loan you can begin your pre-approval process now!
The NLHC First-time Homebuyers Program (FHP) provides a loan of the 5% downpayment needed. There are a few reasons why borrowing a downpayment is usually not recommend, however this Program is different and here are the reasons why:
- $2,000.00 of the funds are in the form of a grant, which does not have to be paid back and can be used towards anything! (closing costs, furniture, appliances, etc.)
- There is an educational component, which includes learning opportunities on financial planning; debt management and home maintenance and upkeep. These materials help ensure applicants become successful homeowners.
- Repayment would not have to begin until after 5 years, interest rates on the loan are low (prime -1%) and payments may be kept to just over $100/month.
There are several criteria areas which apply to both the purchaser and property:
- Home purchase price must be no more than $250,000 in the St. John's metro area. A variance allows up to 10% or $275,000.
- Within $200,000 within 30km of the five regional centres of Clarenville, Gander, Grand Falls-Windsor, Corner Brook and Stephenville.
- $175,000 in the rest of Newfoundland and Labrador [Rural].
- Purchasers: Having up to $75,000 in income can receive a full 5% downpayment, with a sliding scale where incomes can go up to $85,000.
A mortgage pre-approval is mandatory for anyone interested in applying for the downpayment assistance loan. Begin your pre-approval process now!