Down Payment Assistance Programs To Help You Get Your Dream Home
Getting a house requires a lot of effort on the part of the owner. There are a lot of reasons why individuals opt to go down a certain mortgage route. Some borrowers have their own savings and can pay off a hefty downpayment.
Financially speaking, it is somewhat more practical to do so since a bigger down payment means an even smaller monthly amortization.
Reasons for Down Payment Assistance
Around 91% of the population, however, cannot afford to buy his dream home with a big down payment required. Therefore, it is necessary for the government to step in and assist individuals in the process.
If you are in market for a down payment assistance program, here are the top five programs that you can apply for to help you get a down payment so small that you can probably move in the next day.
National Homebuyers Fund
The National Homebuyers Fund or the NHF offers an outstanding down payment assistance program which applies in all fifty states. It could be used by first time homebuyers and the down payment is more or less 5% of the loan amount. The best part about the program is the fact that it is non-repayable which means that once the fund shoulders the 5% loan amount which serves as the down payment, there is no need for the borrower to pay it back. How does one qualify with the program? In order to qualify for the program, the same requirements as other loan providers are asked. It depends on the borrower’s location and the housing market in that area.
Veterans Administration Loans
Veterans Administration Loans or VA Loans is the service given by the government to those who have actively participated in military service. While NHF loans require a down payment paid by the fund and no cash out from the borrower, VA Loans require no down payment at all.
Of course, financially speaking, it is more practical to pay a downpayment in order to spread out the mortgage payments easier but for those who really cannot afford a hefty down payment, this assistance program is the best option.
VA Loans also offers Adapted Housing Grants. Adapted Housing Grants are given to those who need to purchase a special home for his service-related disability. Basically, it provides whatever the individual would need in order to live his life fully after a service-related injury.
The United States Department of Agriculture provides loans for those who live in rural areas and make a meager income. Income is considered as meager if it falls under the low to middle income bracket. This is a top down payment assistance program because it aids the borrower to get a big plot of land and a house. The biggest downside for this particular program is the fact that rural areas are far flung and if you live in the city, you probably would not want to live in an area far away from it.
First Home Club from Quontic Bank
A non-government entity that provides a downpayment assistance program is the Quontic Bank in New York. Basically, the premise is simple: for every dollar deposited, there is four dollars that goes towards the matching fund dedicated for the individual’s new home.
HUD’s Good Neighbor Next Door
The housing program that works specifically for those who live in the service of others, the HUD’s Good Neighbor Next Door is a top down payment assistance program because it allows for firefighters, law enforcement officers, teachers, and emergency medical technicians to purchase property in an area made for rehabilitation. The only promise that the borrower would make is related to living in the property for at least 46 months and he would receive up to 50% off the price list of the house.
With the five down payment assistance programs, it is easier to get caught in the processes and procedures. Hence, it is important to hire a mortgage professional and get all of the help that you can get to achieve your dream home. Do your research and always visit the location before diving in the loan. It is always easier to do research than to live with a housing nightmare on your bank account.
This is should be a prospective customer's number one call to action, e.g., requesting a quote or perusing your product catalog.