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    The Sapphire Program: Helping YOU Afford Your First Home

    Tip Tuesday

    If you earn a low-to-moderate income, saving for a down payment can seem like an impossible task. How can you pay your monthly rent, car payment, and other expenses while still saving enough money to buy your dream home? Your local mortgage broker has a solution for you: The National Homebuyers Fund, Inc. (NHF) FHA Sapphire Down Payment Assistance Program.

    The NHF FHA Sapphire Program is grant program for low-to-moderate-income Illinois homebuyers who can qualify for a mortgage but need help with their down payment and/or closing costs. The grant provides up to 4.5% of your new home’s total loan amount, so you can pay your down payment and/or closing costs. The good news is since this is a grant, you don’t have to pay back the funds.

    Some key NHF FHA Sapphire Program features include:

    • 30-year fixed loan
    • FHA financing
    • Single family housing – 1 to 2 units allowed
    • No prepayment penalty or recapture fees
    • No equity sharing
    • No deed restrictions
    • The lesser of $424,100 maximum loan limit or lesser of HUD county limit
    • Seller credit of 6% is allowed.
    • Gift funds are allowed.
    • Borrower paid origination fee of 1.5%. You may use the grant money to pay for the origination fee.
    • Nationwide administration fee of $1,145.

    Sapphire program borrower eligibility requirements include:

    • Maximum 620 FICO credit score.
    • Maximum debt-to-income (DTI) ratio up to 50%.
    • Qualifying borrower income cannot exceed 115% of the Area Median Income. Limit is based on the qualifying income used for the transaction – not your household income.
    • The borrowers must occupy the home as their primary residence.
    • Non-occupant co-borrowers or co-signers are not allowed.
    • You do not have to be a first-time homebuyer.
    • At least one borrower must complete homebuyer education.

    Want more information on the Sapphire Program? Contact the Killebrew RE at The Real Estate Group today to be put in touch with a local mortgage lender you can trust. Call us at 21.546.1234 or email for more information!

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