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Buying a Home

A Home For Every Family

There are number of different programs available for first-time homebuyers. Many people start the home buying process with one of these programs, or with a community organization. Below is a list of GreatStart Bank’s partner programs.

Individual Development Account Program
Our Individual Development Account program, or IDA, partners you with participating organizations that match your savings contributions to help you save for a down payment or closing costs. For example, our Community Investment IDA program will match $3 to your every $1 of savings, with a maximum of $5,000 towards a down payment or closing costs for your first home. In order to participate, you must attend home ownership counseling and set up a savings account at GreatStart Bank. You must also complete our financial education classes.

Homeowner Education Program
Our Homeowner Education program helps people understand the process of buying a home. It offers information on topics like budgeting, finding a home, getting a loan, and maintaining a home. The Federal Housing Authority (FHA) also has a program you can participate in called the Homeowner Education Learning Program, or HELP. If you plan to get an IDA, you must complete one of these programs.

Government Loan Program
Our loan officers can also identify a government loan program to help you, if you are eligible. Government loan programs are usually targeted to individuals and families with a modest income. These programs might have purchase price limitations, service charges, and higher loan origination fees. They also have one or more of the following characteristics:

  • Zero or low down payment requirements. For example, some require a 3% down payment, and some require 5%, with 3% having to come from the borrower and 2% coming from other gifts or other grants.
  • More flexible underwriting standards. This means the lender will consider non-traditional forms of proof of credit history, such as rent or utility payments, and higher ratios of debt compared to your income.
  • Longer payment terms than standard mortgage loans. This results in a lower monthly payment.