The amount of money a borrower must have for a down payment and closing costs is one of the largest obstacles many buyers face to owning a home. Home buyers who need assistance with a down payment may take advantage of a few options. Along with several local programs that offer grants, down payment assistance loans provide borrowers with a junior loan to cover closing costs.
Many buyers make the mistake of assuming down payment assistance is only available to low-income buyers. Programs are varied, and most allow borrowers to earn between 80 and 120 percent of the median income in the area.
The following is an overview of popular down payment assistance loans available. Request information from a loan specialist in your area for similar programs that are available for your state.
The economic downturn affected just about everyone’s credit in one way or another, making it difficult to build good credit. But help is still available for homebuyers looking for an affordable way to purchase a home with almost no money down, if they know where to look.
With borrowers trying to get back on their feet, we understand the challenges of meeting the requirements of a down payment. To overcome these hurdles, banks have created a growing number of Down Payment Assistance Programs. From interest-free second mortgages to grants and special loans, banks are finding ways for the average person to purchase a home with little money down. These types of loans still have limitations, but offer hope for buyers. Statewide down payment assistants are also available to answer any questions.
There are several local programs that provide buyers with down payment assistance and loans.
To find additional programs in your area, check with your city housing finance agency, a lender or a local nonprofit housing organization.