Washington Informer: Wow. What a difference a year makes! Last summer we were still in the grips of COVID-19, inflation was tame and 30-year mortgage rates were around 3%. As of September 1, 2022 average 30 Year Fixed Rates are almost double. Last year’s low rates led to fierce competition from an abundance of buyers and fueled a seller’s market. Now the opposite is true. Buyers no longer qualify at the price points approved in 2021 and many have dropped out of the market. Less buyers in the market for a home has led to less competition and sellers now have to adjust. For the buyers still in the market, this is actually a benefit since they now can negotiate a lower price and/or closing costs. Seller provided closing cost assistance is particularly valuable to first time buyers. If you have wanted to buy a home and never thought you could, this is actually a good time for several different reasons.
To promote and foster homeownership in low-to-moderate income and majority Black and Hispanic communities, many banks are now offering down payment assistance grants and special financing programs. The National Urban League recently announced an increase in the maximum Housing Purchase Assistance Program subsidy from $80,000 to $200,000. The amount of assistance and programs vary by Bank but the bottom line is there is help available. George Mason Mortgage and United Bank recently announced the release of two new grant programs; The Welcome Home Grant1 and Journey Home Grant2. Both grants combine a low down payment mortgage with down payment and closing costs assistance of up to $10,000. These grant programs were designed to bridge that gap while providing the new homeowner with competitive rates and fees.
The Journey Home and Welcome Home Products are currently offered in select areas of the DC Metropolitan Statistical Area (MSA) and are designed to support property purchases in LMI (low to moderate income) and majority minority areas. First time homebuyers must complete an online Home Buying class.
In the six months since we launched these Grant Programs, we have helped 150+ families achieve their dream of homeownership. We have another 50 families moving toward closing in next 60 days. As a full-service lender, we can finance almost any residential property scenario. We also offer, VA, FHA, Jumbo, Construction and Renovation loans.
GMM is proud to continue supporting and investing in our communities through the path of homeownership.
When you are ready to start your journey to homeownership, please reach out to me at 202-494-3284 or [email protected]
GMM SVP, Director Community Lending
NMLS ID 459546
Email: [email protected]
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