Down Payment Assistance Case Study

The Challenge: Savings That Didn’t Cover the Entire Purchase

For these buyers, the obstacle was the upfront cash required to close.

A down payment is only one part of that amount. Buyers also need to account for closing costs and prepaid expenses, with the total depending on the property, financing, and transaction details.

In both cases, covering the down payment separately allowed the buyers’ available funds to go toward the remaining expenses.

The Approach: Combining Assistance, Seller Contributions, and Buyer Funds

We used Chenoa Fund down payment assistance through a second mortgage to cover each buyer’s required down payment.

The financing came together through three sources:

• Down payment assistance covered the down payment.
• Seller contributions covered a portion of the closing costs.
• The buyers’ own funds covered the remaining amount due.

Each buyer contributed approximately $10,000 toward closing costs. These were purchases with an assisted down payment, and both buyers still had out-of-pocket expenses.

I helped each buyer work through the financing requirements, including documenting completion of homebuyer education, and understand how the assistance fit into the overall purchase.

The Result: Two Completed Home Purchases

Both buyers completed their purchases.

The assistance addressed a specific shortfall: they had money available, but needed additional help to cover the upfront costs. Combining assistance with seller contributions and their own funds made the transactions possible.

These experiences show why it can be worthwhile to review financing options before assuming that more time saving is the only path forward.

What Buyers Should Understand About Down Payment Assistance

Chenoa Fund is one of several down payment assistance options. Assistance may be structured as a second mortgage, and programs can have different eligibility rules, payment requirements, and forgiveness conditions. Some assistance loans require a separate monthly payment.

Forgivable does not mean automatically forgiven. Borrowers must meet the terms of their particular assistance loan. Selling or refinancing before those conditions are satisfied may require repayment.

It is also important to consider the complete financing package: the monthly payment, interest rate, closing costs, second-mortgage terms, and cash needed to close. Reducing the upfront cash requirement is one part of deciding whether a loan fits your situation.

Could Down Payment Assistance Help You?

If you have some money saved but are unsure whether it is enough to purchase a home, a review of your options can help clarify what is possible.

At Platinum Lending Solutions, I can help you understand available assistance programs, how they compare with other financing options, and what you would still need to contribute.

Explore homebuying options in Oregon and Washington.

Schedule a Consultation

Contact Stacy at Platinum Lending Solutions to discuss your homebuying options in Oregon or Washington. Or call (503) 222-4663.

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