George K. Baum & Company has developed a variety of gifted down payment programs, including programs funded by premium bonds, Federal HOME funds, state housing trust funds and issuer equity.

Down Payment Assistance Funded from Premium Bonds. The original form of down payment assistance, which generally results in a higher mortgage rate for a borrower in exchange for receiving the down payment assistance.

Down Payment Assistance Funded from Federal HOME Funds. Federal HOME funds can be used to provide assistance gifts as part of the single family structure. In addition to the utilization of the HOME funds to provide assistance, additional HOME funds are generally used to provide a highly subsidized mortgage rate.

Down Payment Assistance Funded from State Housing Trust Funds. Several states have trust funds which can be used in affordable housing programs. These funds generally have their own statutory requirements for how borrowers are targeted. Such funds can generally be used to provide assistance as well as an additional rate subsidy, if desired.

Down Payment Assistance Funded from Issuer Equity. Providing down payment assistance gifts can be used by issuers addressing a non-originating single family program. The mortgage rate and an issuer’s administrative fee can often times be raised to provide the issuer with a good return on their investment.