The SCOOP! Blog by ChangeMyRate.com®

Buying a Home with a Down Payment Assistance Program

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.

Helps Home Buyers Purchase a Home Sooner

It 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.

Makes the Purchase as Affordable as Possible

Home 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.

Helps Offset Increases in FHA Premiums

Over the years, the Federal Housing Administration (FHA) has been the primary place for many first-time 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.

Helps Working Families to Live Close to Work

All 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.

Provides Valuable Homeownership Education

In 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.

Search for Down Payment Assistance Programs

Ask 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.

To view the original article click here

Posted by Jackie A. Graves, President on February 5th, 2018 7:06 AM

Archives:

My Favorite Blogs:

Sites That Link to This Blog: