Using Down Payment Assistance in Acquiring a New Home

Photo credit: NOBUHIRO ASADA / shutterstock.com

Often, people who are looking for a new home find the ideal candidate for their purchase. At first, people might be excited, but then, the bad news comes around: the same property demands a 20% down payment. For many individuals, couples or families, these 20% end up being a very hefty sum which they cannot easily acquire. When they are met with this problem, a substantial number of potential buyers would simply give up. But, this does not have to be the case. With down payment assistance program, the same real estate can be in their reach. Currently, there are almost 2,300 programs that are designed to provide support in the domain of down payment. For these, requirements of eligibility are in places which are connected with a person’s credit, occupation and income, but many do not even know that the same programs exist. Here are the most important facts about these programs.

How Much Will Down Payment Assistance Help?

Recently, a study found out that these programs save, on average, over $17,000. Out of this sum, about $6,000 represent the savings in the down payment stage. A further $11,000 is saved through the monthly payments that take place over the loan’s lifetime. But, when all of these are combined, it is clear that the savings represent a very valuable opportunity. In fact, the savings are so big that for many homes, they represent a big chunk of the entire price of the property.

Who is Eligible for the Programs?

Most often, down payment assistance programs are designed to help out low-income buyers who are looking to buy property. But, there are a lot of programs which do this for the middle-income buyers as well. Here, the problem is that middle-income buyers are regularly completely uninformed about the availability or even the existence of these programs, especially those offered by the federal government, but also the counties and the local communities. Additionally, homes that are included in the Neighborhood Stabilization Program regularly qualify, as well as firefighters, teacher and others who work as civic employees. There are also programs that offer assistance to first-time home buyers, which can be anyone who has not owned their own home in the previous three years.

Finding Down Payment Assistance

The most important place where everyone should start looking for this type of assistance is the readily available online resources that specialize in this domain. Here, many useful tools are available, along with a calculator which will point out which programs are accessible. Other options include using state lists of payment assistance programs, but the DHUD (Department of Housing and Urban Development) website is also a great resource. Finally, any offer should be checked in relation to the county in which the property should be purchased, because conditions and terms often vary.

With all of this, anyone will be able to attain the best possible down payment assistance program. For more information and the best possible advice in the same domain, mortgage broker Jerry Stiles and his website on http://www.jerrystiles.com/ will clear up any dilemma and help people make a substantial savings.

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