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Can Down Payment Assistance Help YOU?
Buying a home can be an intimidating process right now, but there are many down payment assistance programs that can help aspiring homeowners pivot from home browser to homebuyer. Many people believe they need to put down at least 20% if they want a home. But that’s not true. Most buyers have down payments ranging from 3.5% to 20% of the sale price of the home they’re buying. In this market, with prices hitting record highs, that can be a hefty sum. That’s where down payment assistance comes in and can help close the gap. Each down payment assistance program will have its own rules and guidelines, but the vast majority are offered only for a home that buyers will live in as a primary residence. Realtor.com discusses some specific options for buyers. What kinds of down payment assistance are available? Let's explore some specifics. Here are some of the more popular national options folks might access to help them to pivot from home shopper to homebuyer. FHA (Federal Housing Authority) loans were created by the U.S. Department of Housing and Urban Development for first-time homeowners. These mortgages allow as little as 3.5% for the down payment, provided buyers have a credit score of 580 or higher, along with other erties, loans might be available with no money down. There are maxqualifying factors. The federal government insures these loans, and for imum income limits and other qualifications to be eligible for one of that reason, banks are more willing to loan money to homebuyers who these mortgages. have neither top-tier credit nor loads of cash to put down on the purVA (Department of Veterans Affairs) loans might be offered directly chase. by the VA or backed by the department. Several factors are considFHA Section 203k loans require only 3% down, provided qualifying ered, such as service history, duty status, income, and credit rating. But buyers will live in the property, typically one that needs work, while those who qualify can purchase a home with zero down as long as the they fix it up. For buyers hoping for a DIY route into a dream home, this sales price isn’t higher than the home’s appraised value. could be a win-win. The cost of improvements is included in the loan so There are other programs available as well. Different states and citbuyers can finance both the home and up to $35,000 in repairs. ies, as well as individual lenders and nonprofits, can help prospective Fannie Mae and Freddie Mac are federally funded loans that can home buyers get the financing they need. Folks should put their locahelp buyers skirt steep down payments. The Home Possible, Hom- tion and “down payment assistance” into a search engine, and take a eReady, and HomeOne loans typically offer a 3% down payment mort- look at what’s available. They might see everything from Habitat for Humanity to local religious organizations pop up. gage to qualifying, lower-income homebuyers. Call your Real Estate Professional to find out how to access these The USDA Rural Home loan program was created to assist people in buying homes in rural locations. For qualifying, single-family prop- programs! 32 | MAY 2022 | ENID MONTHLY
