Achieve Homeownership With Down Payment Assistance

Purchasing your first home is a major milestone, but saving for a down payment can be daunting. Thankfully, down payment assistance programs are available to help. Here’s a quick guide to understanding and leveraging these programs.

What are Down Payment Assistance Programs?

These programs provide financial aid to homebuyers who need help with their down payment. They can come as grants, low-interest loans, deferred loans, or forgivable loans, depending on the program.

Types of Assistance

1. Grants: Funds that don’t need to be repaid.

2. Second Mortgages: Additional loans with low or deferred interest.

3. Deferred Loans: Loans that require payment only upon selling the home, refinancing, or paying off the first mortgage.

4. Forgivable Loans: Loans forgiven if certain conditions are met, such as living in the home for a set period.

Who Qualifies?

Eligibility varies but generally includes:

• First-time Homebuyer Status: Not owning a home in the past three years.

• Income Limits: Targeted at low- to moderate-income households.

• Creditworthiness: Generally requires a reasonable credit score.

• Homebuyer Education: Some programs require completion of an education course.

Popular Programs

• Hometown Heroes: This Florida program is designed to help Floridians in certain job fields become homeowners in the areas that they serve. There are a wide variety of qualifying jobs, including but not limited to: Military & Veterans, First Responders, Healthcare Providers, Non-Profits, Educators, and Government Employees. Borrowers can receive up to 5% of the first mortgage loan amount (maximum of $35,000) in down payment and closing cost assistance.

• Freddie Mac: This federal program has options designed specifically for homebuyers with modest credit scores and limited funds for a down payment.

How to Apply

1. Consult a Local Lender: Get personalized advice based on your particular financial situation to find the best options available to you. 

2. Get Pre-Approved: Your lender will then be able to let you know what kind of loan you could potentially be approved for. 

3. Complete Homebuyer Education: If required.

4. Apply: Submit your application and required documents.

Down payment assistance programs can make homeownership attainable. Explore your options and consult with a lender and real estate agent to take the first step. If you do not have a lender in mind, be sure to give our team a call! We have connections with a variety of local lenders who have years of experience with these assistance programs. 

For more information about down payment assistance programs, take a look at this article from Keeping Current Matters.