|Posted:||December 3, 2013 04:40 PM|
|From:||Senator Anthony H. Williams|
|To:||All Senate members|
|Subject:||Veterans Closing Cost and Down Payment Assistance|
In the near future, I will introduce legislation that will establish a down payment and closing costs assistance program for veterans who are seeking to purchase a home.
Home ownership is an essential component of the American Dream and key to stable, productive communities. While many of our returning veterans have access to the Veteran’s Administration (VA) Loan program, Veteran’s United reports that the average VA borrower has less than $7,000 in assets. That puts veterans at a tremendous disadvantage when facing large closing costs or down payment requirements, even with the help of the VA loan.
Under my proposal, down payment and/or closing cost assistance would be available to a veteran or the surviving spouse of a veteran killed in action who is a first-time home buyer, regardless of VA loan participation. The financial assistance would take the form of a grant, forgivable loan or deferred no interest loan and will be capped at $10,000. While eligibility for the assistance is not limited by income or any type of “means test,” the applicant’s financial circumstances would be a factor in determining the type of assistance rewarded.
The legislation includes a $2,500,000 annual appropriation, and includes a $250,000 set aside for administrative costs. Based on this level of funding, this program could help as many as 250 veterans purchase a home.
Introduced as SB1137