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Down Payment Assistance

Making a down payment can pose as a looming barrier to homeownership for some would-be home buyers, but there is help! Local Mortgage offers four loans programs with down payment assistance features, helping to make your path to homeownership affordable. 

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Down Payment Assistance Programs

Conventional 1%  Down

Eligible first-time home buyers receive a 2% grant, up to $7,000, to be used towards down payment.

Conventional loan requires a 3% down payment, 2% is covered by the grant, buyer makes a 1% down payment.  

Borrower(s) must have a 620 minimum credit score. 

Qualifying income on the loan must be at or below 80% of the Area Median Income. Area Median Income is based on the location of the subject property address. Click here to visit Freddie Mac's Area Median Income lookup tool. 

At least one borrower must be a first-time home buyer - defined as not owning any real estate in the past 3 years. 

FHA  Empowered DPA 

Eligible home buyers receive a 3.5% grant to be used towards down payment. 

Like a regular FHA loan, the FHA Empowered program is a 96.5% loan. Borrowers must have at least a 620 middle credit score. 

Borrowers must meet just one of the following eligibility requirements:

  • First-time home buyer (has not owned real estate in the last 3 years)

  • Have income equal to or below 140% of the area median household income limit

  • Employed in one of the following professions:

    • Military ​

    • First Responder - police, fire, public safety, paramedic, EMT, or similar

    • Education

    • Medical personnel 

    • Civil Servant - federal, state or local municipality employees

Subject property must be a 1 or 2 unit primary residence, or HUD approved condo. No geographic restrictions within our licensed footprint. 

Standard max FHA seller concessions of 6% apply. 

Conventional Lakeview

Eligible home buyers receive a 4% second mortgage to be used towards down payment and/or closing costs.  

Borrowers must have at least a 660 middle credit score. 

At least one borrower must be a first-time home buyer - defined as not owning any real estate in the past 3 years.

3% down payment is required. Second mortgage funds may go towards the down payment. 

Qualifying income on the loan must be at or below 140% of the Area Median Income. Area Median Income is based on the location of the subject property address. Click here to visit Fannie Mae Area Median Income lookup tool. 

2nd mortgage is a 30-year fixed rate with Interest Only payments. Rate is the same as the first mortgage rate. Second mortgage is non-forgivable and is due and payable upon property sale, loan maturation, refinance, or early payoff of the first mortgage.

Sellers may pay up to 3% of the sales price towards the buyer's closing costs. 

Conventional Lakeview program is available in Tennessee, Mississippi, Georgia and Colorado.

FHA Cardinal Elite

Eligible home buyers receive a 3.5 to 5% second mortgage to be used towards down payment and/or closing costs.  

Borrowers must have at least a 680 middle credit score. 

2nd mortgage is a 10-year fixed rate fully amortizing loan. Rate is 2% higher than the first mortgage rate. Second mortgage is non-forgivable and is due and payable upon property sale, loan maturation, refinance or early payoff of the first mortgage. 

FHA Cardinal Elite program is available across all of our licensed footprint. 

Standard max FHA seller concessions of 6% apply.

Need help? Schedule a quick call with us. 

Mortgage Consultation

Become our customer and we will make you a fan.

"made me feel confident and prepared for the home buying process"

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Travis Chapman and Chase Newell were both great to work with. From the first phone call, Travis made me feel confident and prepared for the home buying process. He explained in depth different kind of loans, what to consider, and how the process would work. During the process, Chase was quick to respond and made sure I was updated every step of the way. Highly recommend using Local Mortgage Inc. for your home buying needs!! I am confident I will use them in the future.

Katherine C.

"advantageous mortgage for my first home "

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Derek at Local Mortgage was a great help with getting me an advantageous mortgage for my first home. He was happy to answer any questions I had and the process went smoothly. I'd recommend checking him out for your home buying needs.

Mary L.

"the best rate and payment for my loan"

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Travis and his team were simply amazing! They understood my needs perfectly and worked to get me the best rate and payment for my loan based on my needs! They were always friendly, with the best attention and communication! Everything was very fast and satisfactory, I couldn't be more grateful to them, their work and their attention! I wouldn't hesitate twice to buy my second home with them! Thank you guys. 

Alejandra L.

A human experience with online ease. 

1. Consultation

Our 10 minute consultation is quick and casual. Help us understand your goals so we can put you on the right path. 

2. Application

Apply online or over the phone. We will give you a same day preapproval and get the loan process started. 

3. Processing and Underwriting

Our loan process blends electronic document submission and automated updates with a human touch. We are always available to answer your questions. 

4. Closing

Electronically sign some of the forms before closing, and then meet us at the closing attorney to sign the notarized documents. 

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Our Approved States

We are located in the heart of Memphis, Tennessee and proudly serve our hometown of Memphis and the surrounding areas. Being a local mortgage lender, we are able to provide the best mortgage at the lowest rate to the communities and neighborhoods where we work and live. 

By investing in the best technology and committing to the highest levels of service, we are able to deliver our hometown service across a wider geographic footprint with no sacrifices. Home buyers and homeowners in the states listed here can also get the best rate and experience our five star service. 

Colorado

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Florida

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Georgia

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Mississippi

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Tennessee

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When you are ready,
we are here. 

Ready to get started? Great, click below. If you have questions, call us! Our hours are listed below.

901-504-4663

 

Monday - Thursday                         8am-8pm

Friday                                                    8am-6pm

Saturday                                              9am-4pm

Sunday                                               12pm-4pm

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Travis Chapman

CEO

NMLS 64848

Cell: 901-289-8783

tchapman@localmortgage.com

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Derek Chapman

Vice President

NMLS 1339905

Cell: 901-701-6732

dchapman@localmortgage.com

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Chase Newell

Vice President

NMLS 1290069

Cell: 901-356-0568

cnewell@localmortgage.com

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