For those who are trying to purchase a home for the first time, coming up with a down payment can be difficult. Fortunately, assistance programs are available for those who want to obtain the home of their dreams.
Down Payment Assistance is Available
It’s straightforward. Down payment assistance will provide you the benefits that they’re promoting: to help those people who are buying a home for the first time.
Because a lot of people can’t simply come up with a hefty 20% down payment, the assistance is designed in two ways. One option is to lower the minimum down payment, and the other choice is to give financial aid by grants or discounts.
The U.S. Department of Veteran’s Affairs
This program offers assistance to active and retired individuals in purchasing a home. This help is also extended to their family. Those who take advantage of this aid usually doesn’t have to shell out any down payment. Additionally, they may be able to avoid getting a mortgage insurance. While it all sounds too good, this program has a little downside. The paperwork can be time-consuming, and the approval process can cause a big dent to the pocket.
The U.S. Department of Agriculture (USDA)
This might cause people to be taken aback. Still, the USDA gives assistance to those who are interested in buying a home. Those who are a situation in rural areas can take advantage of this program. To make this process easier, they assist in 100% financing. They also guarantee mortgages for lenders. Still, you have to remember that this is only useful for some areas and features a limitation on income.
The Federal Housing Administration
This is one of the most popular assistance programs as the Federal Housing Administration helps people purchase a home even when their credit is less-than-perfect. Buyers who are assisted by this program can see their minimum down payment tremendously cut to as little as 3.5%.
Fannie Mac and Freddie Mac
With the cooperation of local lenders, this big home loan industry provides assistance in down payment. In many cases, they can lower the down payment to 3% for eligible buyers.
When you’re in the market to purchase your first home, our only advice is to shop strategically. There are plenty of down payment assistance programs out there. Many of them will vary in selections which are why they don’t always fit the need of every home buyer. If you continue to look for assistance programs, you may find the right one for you. So don’t settle for the first one you find!
These assistance programs are designed to help first-time homebuyers purchase a home without the need to come up with the standard 20% down payment. So what are you waiting for? Shop for the home of your dreams now!