New American Funding Service Strives To Help The Next Generation Of Home Buyers

Many people dream of buying a home for the first time, but it can be a dreaded process due to all the moving parts. Moreover, it is a substantial financial commitment, and buyers can quickly become overwhelmed when looking at components like debt-to-income ratios and proof of income requirements. In 2022, first-time home buyers faced many obstacles (via Opendoor), with 43% reporting that simply finding the right home was among their biggest challenges. In addition, 41% of respondents found that waiting for an offer was high on their stress list, 36% said coming up with a downpayment was the most difficult, and 34% noted that their most significant issue was being outbid.

Other overlooked aspects of buying a home include calculating taxes and closing costs, facing unexpected repairs, and reworking your monthly budget. With so much on the line, it's no wonder many first-time home buyers feel woefully unprepared. However, some lenders are attempting to make the process easier. One of the nation's largest lenders, New American Funding, is helping first-time buyers and underrepresented communities combat these obstacles by launching its newest Pathway to Homeownership initiative.

New American Funding's Pathway to Homeownership offers several new loan and grant programs in designated areas for qualified buyers. Those who match the program requirements can earn up to $8,000 in aid for purchasing their first home. With some of these opportunities being grants, recipients are not expected to pay back a single penny.

"The Pathway of Homeownership initiative helps people from all walks of life, who are otherwise qualified, clear the initial hurdles that come with buying a house," says Patty Arvielo, co-founder and President of New American Funding. "We value our future, and with Pathway to Homeownership, we will be able to help more people than ever before buy a home."

Other programs offered through New American Funding include the Latino Focus initiative, which provides aid to the Hispanic community, and the New American Dream, which aims to increase homeownership rates in the Black community. Even better, these New American Funding initiatives can be coupled with Pathway to Homeownership to provide even more assistance to various first-time home buyers.

The Pathway for Homeownership has no minimum or maximum income limitations, offers as low as 3% on down payments, and allows funding to be combined with other payment assistance programs. However, there are limitations. Eligible participants must possess a credit score of 620 or higher and be looking to purchase a one-unit, single-family home. Additionally, the program is not available to current homeowners.

Pathway loan options include three different plans. The 30-year fixed-rate loan is a common choice with firm and affordable monthly payments that won't be affected by market changes. The Seller-paid 2-1 buydown loan gives the first year a payment rate of 2% less than the note rate and a 1% lower rate for the second year on a new loan. The third possibility is the Seller-paid 3-2-1 buydown, which consists of a payment rate of 3% lower than the note rate on year one, 2% lower on year two, and 1% lower on year three with a new loan.