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Saving for a down payment can be one of the biggest hurdles for aspiring homebuyers. But what if you didn’t have to come up with that money all on your own?
There are programs available that may help qualified buyers purchase a home with little or even no money out of pocket for a down payment. And the options are worth exploring!
Here are two types of assistance buyers should know about:
There are programs available that may help qualified buyers purchase a home with little or even no money out of pocket for a down payment. And the options are worth exploring!
Here are two types of assistance buyers should know about:
1. Down Payment Assistance Programs
Some programs provide down payment assistance in the form of a second mortgage. This is different from a traditional loan because many of these programs offer deferred payments, sometimes at 0% interest.
Some programs provide down payment assistance in the form of a second mortgage. This is different from a traditional loan because many of these programs offer deferred payments, sometimes at 0% interest.
For example, the Washington State Housing Finance Commission (WSHFC) offers programs such as Home Advantage, which can provide eligible buyers with assistance toward their down payment and closing costs.
With certain programs, there are no monthly payments on the second mortgage. Instead, repayment is generally required when the home is sold, refinanced, or other specified conditions are met.
In other words, buyers may be able to purchase a home without having to save thousands of dollars for a traditional down payment first.
In other words, buyers may be able to purchase a home without having to save thousands of dollars for a traditional down payment first.
2. Down Payment Grants
Another option worth investigating is a down payment grant. Unlike a second mortgage, a true grant generally does not have to be repaid, provided the buyer meets the program requirements. Grants may be offered through housing organizations, government agencies, community programs, or individual lending institutions. Availability and qualifications vary, so it’s worth asking about the programs in your area.
Another option worth investigating is a down payment grant. Unlike a second mortgage, a true grant generally does not have to be repaid, provided the buyer meets the program requirements. Grants may be offered through housing organizations, government agencies, community programs, or individual lending institutions. Availability and qualifications vary, so it’s worth asking about the programs in your area.
The Bottom Line
Don’t assume that a lack of down payment savings means you can’t buy a home!
There are more options available than many buyers realize. Some programs are statewide, others are local, and some are offered through individual lending institutions.
The best place to start is by talking with a knowledgeable mortgage professional who can help you explore the programs available, explain the qualifications, and determine which options might work for your situation.
There are more options available than many buyers realize. Some programs are statewide, others are local, and some are offered through individual lending institutions.
The best place to start is by talking with a knowledgeable mortgage professional who can help you explore the programs available, explain the qualifications, and determine which options might work for your situation.
You may be closer to homeownership than you think!
https://heretohome.org/downpayment-assistance/
https://heretohome.org/downpayment-assistance/
