Down Payment Assistance May Be Available to You

Many first-time home buyers are unable to come up with the down payment needed to buy a home. It can take years to save the funds needed to close on a home. With home values on the rise, the cost of a down payment rises proportionately.

Down payment assistance (DPA) programs are offered by most local county, city and state governments. It will depend on where you live as to what is available.

There are two categories of DPA loans. Most programs will involve incorporating the down payment assistance into a small loan. If you were attempting to save a 20% down payment on a $200,000 home, your local government entity may have a program where it would loan you a percentage of the $40,000 down payment, allowing you to step into a home purchase sooner. The other type of DPA is where the assistance is given to you in the form of a grant.

Generally, DPA programs are limited to first-time buyers. Some programs may have certain income requirements in an effort to help lower-income families. The home must be owner-occupied, not a rental. Each program is different, with some requiring you to contribute a percentage of your own cash to close.

If you qualify for a down payment assistance program, it will enable you to be a homeowner much sooner than if you had to devote more years to saving. Please contact me so I can see what programs are available and if you qualify.