RHA down payment assistance…Help or Hassle?

I recently attended an RHA training course. I have a client who is going through the RHA process and I was looking to gather a little more information on how the program works.  RHA stands for Regional Housing Alliance.  The class was provided to Realtors and affiliates. The RHA provides loan assistance to those in need of financial aid.  The program we have here in Durango is specifically designed for buyers in La Plata. The funds they provide works like a 2nd loan on a mortgage. The difference in a 2nd loan and RHA assistance is with RHA the new owners do not have to make monthly payments on the money borrowed. When the owners decide to sell -the RHA will be paid 2% of the equity the home earned at closing. This program is a great way to help 1st time home buyers get into the market.
 
SO.. In the end does this process help or hurt the buyer while attempting to buy a house??  Well, it depends. The buyer must first complete the RHA class which is full of helpful education and counseling. Then the buyer will be placed on a waiting list. Once funds come in, the buyer will know how much to expect and when. The RHA counselor will issue a commitment letter stating the RHA is prepared to issue $ X amount to the buyer. Through this process, the more communication you maintain with your Housing Counselor- the better. RHA can not make 100% promises on funding or when funds will be delivered but they are willing to work hard and do everything in their power to make things work. Making an offer or shopping for housing before getting that commitment letter does pose a higher risk and can complicate the buying process. If you follow the process as directed it could be utilized as a great help.
 
My advice to buyers looking to work with RHA:
 
- Go speak with a RHA counselor to see what your options are.
- Complete the class full of helpful education.
- Get on the waiting list.
- Start talking to a Realtor who is a good fit for you.
- Do some homework to see what kind of house would work for your situation.
- Once you are issued a commitment letter…start shopping!
- Find your house and write an offer!
 
This is a wonderful program that many people are taking advantage of.  Click HERE for La Plata County Regional housing website.
If you would like more information feel free to contact me anytime. 

If you are not in LaPlata county and would like Regional Housing information for your county check with your local real estate association.
Thanks!

~Shaheen Hangval