What is Down Payment Assistance Program?
Down Payment Assistance is funding that is provided to home buyers through either federal, state, or locally backed programs. You may be thinking, “how does down payment assistance work?” Well, this assistance option helps people get the financial assistance they need to afford a reduced down payment through different means depending on the program!
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 Down Payment Assistance grants, then you could reduce the time it takes down from years to weeks!
How Much Will You 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 for the most available Down Payment Assistance programs, any help is better than no help!
How Do 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 for an available home down payment assistance program! You may be eligible for more assistance than you think based on your zip code. 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!
Tip #3: You could receive a government assistance home down payment, but there are more assistance options than just government down payment assistance. This means that it is important to review what else is available.
Tip #4: Many people believe that any down payment assistance program for first time home buyers means that they are disqualified. However, not every down payment assistance option is designed for first time home buyers – which is why it is important to speak to a professional if you have any questions. You can find assistance resources at your local Public Housing Authority (PHA)!