What is Down Payment Assistance?
Down Payment Assistance is funding that is provided to home buyers through either federal, state, or locally backed programs. This assistance option helps people get the financial assistance they need to afford a reduced down payment.
An example of this assistance would be if you wanted to buy a $175,000 home and need 3 percent to be eligible ($5,250), it would take years to come up with that amount of money if you save roughly $150 a month. If you are eligible for a Down Payment Assistance program then you could reduce the time it takes down from years to weeks!
How Much Can I Receive?
This question is based on the amount of the loan as well as where you are buying the home. Zip codes can be pretty important when seeing how much programs can provide. For example, in Hawaii the most assistance that can be provided is $80,000 compared to the national average of $17,500. However, even if you are not eligible to receive the most available assistance, any help is better than no help!
How Can I Verify if I Qualify for Down Payment Assistance?
The first step is to go to the official Down Payment website. Once there, you will need to answer some questions about the home you are planning to purchase and how much assistance is needed. It is completely free, and doesn’t require any credit checks. You can see if you qualify in 60 seconds or less! You may be eligible for more assistance than you think based on your zipcode. You should check your eligibility for assistance as soon as possible. The 2020 Down Payment Assistance deadline hasn’t been announced yet so it is better to be prepared sooner rather than later!
Tips that Can be Useful to Know:
Tip #1: The better the credit scores then the better the assistance that you will receive. If you have a score of at least 550 then it will be considered “Good”.
Tip #2: This type of assistance is only eligible for single-family homes. Mobile homes and apartments do not qualify!