Saving money for your down payment may be one of the more challenging aspects of becoming a first-time homeowner. You may think that you need to make a down payment of 20 percent of your new home’s sales price, but this is not always the case. There are a number of down payment assistance programs available to first-time homebuyers. These programs can help you to bridge the gap. Through them, you could ultimately make a smaller down payment while getting into the home that you have your eye on.
There are several types of down payment assistance programs for first-time homebuyers, and some are also available for those who have not owned a home in the last three years. The qualifications for and the amount of assistance provided by these programs vary considerably, so it is important to understand all of the options available. Grants are available to some individuals, and these are essential gifts that you will not need to repay. Another option is a forgivable loan. These are second mortgages, but you will not have to repay the debt if you stay in the home for the required time period. An alternative is a deferred-payment loan, which is not payable until you refinance your first mortgage, pay down the first mortgage or move. There are also low-interest-rate second liens that do have a monthly repayment obligation. Matched savings programs are also available through various community organizations, banks and government departments. They may provide a dollar-for-dollar match for any funds you deposit into a special down payment savings account.
Are you looking for more specific details about the down payment assistance programs that are available? Some of the options that you can take a closer look at today are the Chenoa Fund, Community Seconds, Housing and Urban Development programs, Fannie Mae and Freddie Mac loan programs and HomePath properties. You may also look at the requirements for FHA, VA and USDA loan programs. Are you eager to get to know your financing options? Connect with one of our loan reps at MortgageDepot today.
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