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A lack of cash sometimes stops would-be buyers from achieving their goal of owning a home.

While programs that provide down-payment and closing-cost assistance may be available from your local or state government, some lenders also offer special programs to help buyers who can qualify for a loan but need a little extra assistance. Prosperity Home Mortgage, a subsidiary of the Long & Foster companies, recently announced its HomeBuyer Boost program, which will provide closing-cost assistance for qualified low- to moderate-income buyers.

The conventional loan program is limited to borrowers whose income must be 100 percent or less of the area median income, which is $109,200 for a family of four.

Borrowers with an income at or below 80 percent of area median income are eligible for a $1,000 credit toward closing costs. The income from all borrowers on the loan must be included, but non-borrower income can be considered toward the debt-to-income ratio.

In other words, if you have a relative or friend who plans to live with you for at least a year, that person’s income can count as part of the household income to help repay the loan.

Borrowers can make a down payment of as little as 3 percent of the purchase price as long as the home will be their primary residence. Down payment funds can come from a variety of sources, with no minimum required from the borrower’s own funds. Mortgage insurance requirements will be lower than usual for borrowers.

Homeownership education is required for all borrowers. Borrowers who receive one-on-one homeownership education instead of the online course can earn a $500 credit.

For information about the HomeBuyer Boost and Express Closing programs, visit www.phmloans.com and contact a mortgage consultant.

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