May 20th, 2016 5:06 AM by Jackie A. Graves, President
only I could afford the down payment, I could buy that home." You might be
able to do both. An acceptable down payment might be smaller than you think
(hint: less than 20%). On top of that, you might be eligible for down payment
Can I make a down payment of less than 20% of the home’s sale
Yes! In fact, a 2015 RealtyTrac survey showed that the average
down payment was around 15%; 40% of respondents put down 10%. According to a
2015 National Association of Realtors® survey, Millennials put down an average
little as 3% down, a qualified low- or moderate-income and/or first-time
homebuyer (which includes former homeowners who haven’t owned in at least 3
years) could benefit from one of our Home Possible®mortgage products.
Does the whole down payment need to come from my personal savings?
No! Hundreds of programs provide down payment assistance, but
eligibility requirements vary depending on your location and generally are
limited to first-time and/or low- and moderate-income homebuyers. A number of
programs specifically benefit veterans, Native Americans, and workers employed
in education, health care, law enforcement, and firefighting.
Department of Housing and Urban Development (HUD) gives grants to state and
local organizations nationwide. These organizations, in turn, use these funds
to help homeowners bridge the down payment gap. To find the programs in your
area, check out HUD's listing or Down Payment Resource's handy tool.
local housing finance agencies (HFAs) administer many of these programs. Go to
the National Council of State Housing Agencies' web site for a state-by-state listing. Or visit the National
Association of Local Housing Finance Agencies' site for local-level program information.
Home Possible mortgages let you use money from sources besides
your savings, including these:
Gifts from your family or employer
Grants or loans from not-for-profit or government agencies
What else do I need to know?
Get housing counseling. It’s helpful in any case, but some
assistance programs require it. And it’s a prerequisite for a Home Possible
My Home by Freddie MacSM offers
an array of valuable resources and tools on homebuying and homeownership.
Your lender or real estate professional also is a good source of
Freddie Mac Borrower Help Centers and
Borrower Help Network deliver
free services through HUD-approved counseling agencies.
yourself enough of a financial cushion after buying your home to feel confident
that you can afford to keep and enjoy it.
Follow this series just in time for the spring homebuying
Courtesy of FreddieMac - To view the original article click here