Just because you cannot afford to buy a home doesn’t mean that you cannot have a home! Get help through the down payment assistance and you will be able to possess your own home, providing the best shelter for your family.
In down payment assistance program, home buyers are offered with the grants and forgivable loans. They can access the program by fulfilling all the requirements and knowing how an individual can be a homeowner even without having enough cash.
Thus, we write this article to show you what programs offered by the down payment assistance, how to find the programs and how to apply for the programs.
Down Payment Assistance Programs
Down payment assistance provides a number of programs to help people buy their homes. These programs are backed by the state housing finance agencies, cities, countries and non-profit organizations as well as some employers.
The programs are usually packed into mortgages available for the first-time home buyers.
Here are the common programs offered by the down payment assistance.
- Grants
In down payment assistance, grants are given in the form of money gift.
- Zero-interest, Forgivable loans
The loans are available for certain periods of time such as five years. The borrower shouldn’t pay back as long as the he stays at the home unless the period is over. Well, this is like you are borrowing a home for certain periods.
- Zero-interest, deferred-payment loans.
These loans have their own terms and conditions including the rules of no payment on the down-payment and closing costs loan. All of these must be paid later when the home is sold, the mortgage is refinanced and the borrower reaches the end of mortgage end.
- Low-interest loans.
Low-interest loans are the down-payment programs that must be repaid over a period of time. This makes people able to own a home by joining programs of down payment assistance.
Down-Payment Assistance Eligibility
Down-payment assistance is usually designed for the first-time home buyers. However, down-payment assistance keeps opening the programs in more than 38% for repeat buyers.
The programs offered in the down-payment are for people who don’t have a home yet for the past three years. Some other programs are also targeting teachers, police officers, emergency responders or even city employers.
Here are the requirements of applying down payment assistance:
- Register and join a home-buyer education course.
- Have income limits. This way, the borrower’s income should be below the limitations based on the down payment assistance program.
- The property (home) you are going to buy is located in an approved location.
- Stay not more than maximum home purchase price.
- Use some of your own money to purchase the home.
How To Find Down Payment Assistance Programs
If you really want to buy a home with the help of down payment assistance, you can check some places to find the programs. First, you can come to the state housing finance authority. Visit the first-time home buyer programs page and choose your state. Read the description whether the programs are in your location.
Second, find out whether your city or government offers down payment assistance or other similar programs to help you purchase a home. Third, go to the U.S Department of Housing and Urban Development by visiting the local homebuying program page on HUD’s website. Look for your state to see the programs’ list.
- Advertisement -
The fourth way on how to find the down payment assistance program is to consult with HUD-approved housing counselors. In this case, the Consumer Financial Protection Bureau offers a tool to help you find the housing counselors in your local state.
Last, you can also check the Down Payment Resource. In this regard, the company usually comes with a tool on its website to find housing programs in the location where you live. Easily, you can also find an online form where you can fill your contact information.
How to Apply for Mortgage Down Payment Assistance
Digital era makes everything easy and possible to carry out. Truly, you can certainly visit the website of the local government organization or agency that administer the program.
- Advertisement -
Learn from the website through the description about the requirements of down payment assistance or home equity loans. Generally, there is a list of approved mortgage lenders. Apply for the mortgage provided by the approved lenders.
Overall, there is nothing impossible when you want to possess a home on your own. There are some possible ways that you can try to help you. One of which is making use of the down payment assistance. With such assistance, you will be offered with several options how to buy a home with the mortgage or other programs.
Make sure you meet the requirements and you’ll get your dream house.
