February 5th, 2018 7:06 AM by Jackie A. Graves, President
There are more than 2,000 down payment assistance programs
available across the U.S. that may help you buy a home sooner than you think.
What are the benefits of using these programs? Let’s take a look.
immediately builds your buying power and can help you take action on a purchase
more quickly. Down payment assistance programs also gives home buyers an
important cash cushion so savings and reserve funds are available for home
maintenance and other unexpected emergencies.
buyers of all income levels have seen the housing crisis up close and want to
ensure their purchase is an affordable and sustainable one. Home buyer programs
can help more families build some equity when they purchase and take advantage
of record low interest rates.
the years, the Federal
Housing Administration (FHA) has been the primary place for
home buyers to get a low-cost, low down payment loan. In fact,
FHA sustained housing markets nationwide during the economic and housing
downturn. However, FHA recently took steps to stabilize the fund, including
increases to premiums, increased down payments for some borrowers, and greater
risk controls. Many don’t know that FHA loans can be combined with a down
payment assistance program, helping offset increases in the down payment
requirement and premiums.
communities need public service employees. These are the police officers,
firefighters and teachers who, especially in high-cost areas, often live far
from the community where they work. Important note: You don’t need to be a
teacher, nurse, police officer or fireman as long as you work for one of these
institutions. These programs are designed to help keep these vital
professionals in the community and reduce commuting costs.
order to qualify for an assistance program, most require home buyers to
complete homeownership education. It typically covers the logistics and steps
of buying a home as well as financing basics, homeownership responsibilities
and contract obligations. This valuable, upfront education helps prepare buyers
for the home buying process and sets you up for long-term homeownership success.
your agent and lender about
programs in your market or check out this Down Payment Resource
Center webpage. Do your homework on assistance programs before you
begin shopping for homes. It will help you understand all your mortgage options
and what you may be able to afford.
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