You have some options for a down payment on your mortgage loan, and one of those is getting down payment assistance. While not everyone may qualify, more people than you might expect will be able to get some down payment assistance to get into the house they want. By working with your real estate agent and talking to local and national lenders, you can find out whether you meet the criteria to get some help with your down payment. The type of property you’re buying and its location may also matter, as some programs are from state governments and others are based on rural versus urban locations. There’s no harm in asking, because you want to get anything that’s offered to help you make a down payment and get into your new home.
Do you have a low income?
The main reason that people get down payment assistance is because they have a low income. This can come from problems with their finances, or from having a job that doesn’t pay at lot, but is stable. Younger people who are just starting out also have lower incomes in some cases, and that can mean that they would be good candidates for getting assistance with their down payment. While there are others reasons that people can get down payment assistance, those who have lower incomes will want to check with lenders and assistance agencies in their area to see what they might be eligible for. That can help them get into homes that they might not have been able to afford otherwise, so they don’t have to keep renting if they want to buy.
Is there a specific hardship in your family?
When you want to buy a home, you may not have the down payment you need because of a specific life event. If the main breadwinner has passed away, for example, the family may be struggling more than they did in the past. While there may be enough money coming in to make a mortgage payment, being able to save for a down payment can be much more difficult. Rather than remain renting for the rest of your life, you may want to consider whether you will qualify for some assistance that can let you put a down payment on a house. It could help you get moved into a place you really love and will enjoy for a long time.
Are you buying a rural property?
One of the best ways to get some down payment assistance is to buy a rural property. These are harder to sell, and they may also be harder to get financed on simply because they aren’t as commonplace. Because of that, lenders and other agencies know that offering some down payment assistance can provide an opportunity for people who want to own rural land and small farms to do that much more easily. This can then make the land sustainable, there’s often good reason to make sure people can buy it and get moved in. With some down payment assistance that’s much easier to do for many people who have dreams of owning this kind of land.
Is this your first home?
First time home buyers may have a few down payment assistance options, which can help them get what they need to move forward with their dreams of home ownership. Not every first time buyer will qualify, but if you’ve never owned a home before it’s worth asking whether there are any programs that might be able to help you. Additionally, some programs are extended to people who haven’t had any ownership interest in a home in the last three years. Effectively, they are treated as first time buyers and could have the opportunity to get involved with some of these down payment assistance programs. If you haven’t owned a home in years it never hurts to ask if help is available to you.
Do you have any down payment of your own?
When you find a home you love, you want to be prepared to buy it. That can be hard to do if you really don’t have much down. If you can put down a partial payment, though, you could have more of a chance to get the home you really want. That’s because having at least some of the down payment indicates your readiness and desire to buy a home, and an ability to save. If you also have good credit and a stable income, you could have the chance to qualify for a program that would add to the down payment you already have, bringing it up to the level you would need to qualify for the loan.
Are there programs that don’t require a down payment at all?
Be sure to ask your lender about all of the down payment assistance programs that are available to you. Some programs are available where a buyer can purchase a home without a down payment of any kind. These programs aren’t available to everyone, but they’re worth asking about. If you can purchase without putting anything down, though, it’s important to remember that you won’t have any equity in your home. You may also have to pay private mortgage insurance, and your mortgage payment will be higher than it would if you put money down. That’s not to say these programs aren’t good, but it’s important to understand what you’re really getting anytime you get a no down payment or down payment assistance option.
2 Point Highlight
You have some options for a down payment on your mortgage loan, and one of those is getting down payment assistance.
Be sure to ask your lender about all of the down payment assistance programs that are available to you.
