Down payment assistance programs are the solution many people have been looking for. There are some wonderful programs out there that can help potential buyers secure their dream home. However, there are some things to watch out for as well. In our latest post, we will give our take on several down payment assistance programs!
Many people don’t consider home ownership because they are worried about a 20% downpayment often required with a conventional loan. You do not need 20% to buy a house. In fact, in 2016 the average downpayment was only 4%. There are all kinds of programs available to those who look for them. Less than 10% of people apply for downpayment assistance.
Yet the average amount of assistance received is over $10,000. To learn about programs available for you, do some research online! Or talk to a professional, such as the team at Memphis Investment Houses, LLC, who can help you get into the house you have been dreaming of!
Programs Based on Demographics
There are all kinds of programs out there that can help you get into the house you want. There are many programs based on demographic. Some of these include assistance for Native Americans, single mothers and people in rural areas who are looking to develop. There are also a number of programs available for first-time homebuyers. Many of these are grant programs, which do not require the recipient to pay the money back.
There are a number of programs available to current and former military personnel. The Military Housing Assistance Fund is designed to help military families become homeowners. Another program is the Dream Makers Grant Program which offers grants to cover down payments and other purchasing costs.
Programs for Community Workers
Just like military personnel, there are a number of programs designed for first responders and other community workers. Teachers, police officers, firefighters, nurses and many other trades have special programs designed to help make homeownership a real option for many people. HUD provides the “Good Neighbor Next Door” program which assists law enforcement, educators and medical personnel with huge incentives when buying a home. Programs like “Teacher Next Door” can help teachers become homeowners quickly.
State and City Programs
Many states have self-ran programs designed to help prospective homeowners. Each state is a little different, but all of them want to see you get on the path to successful homeownership. Many metropolitan areas have their own programs set up as well. If you live near a major city, contact their services department to find out it there are any programs available that can help you!
Low Down-Payment Mortgages
You don’t have to stick to the conventional mortgage, with its 20% downpayment. There are many other loans that ask for much less up front. An FHA loan will often only require 3.5% as a downpayment with a credit score of 580 or higher. VA loans can be acquired with NO DOWNPAYMENT whatsoever.
A USDA loan is only available in certain parts of the country, however many parts of the US are considered “rural” according to their guidelines. You must have great credit, however, a USDA loan might not require a cent toward the down payment.
No matter who you are, where you live or the type of property you are looking for, there is a program out there that can help you. Make sure you are working with a professional, who will share with you the BEST programs available to you. If you have thought about purchasing a house, it might be easier than you think!