It’s undeniable that purchasing a home has become more difficult, particularly with the current mortgage rates and rising home prices. This may explain why many individuals are keen to explore grants and assistance programs to determine if they qualify for any beneficial aid. However, it’s unfortunate that numerous homebuyers are uncertain about where to begin.
In a recent study by the Bank of America Institute, prospective buyers were surveyed to identify areas where they lacked confidence in the process and required further information. This issue emerged as the top concern among respondents.
53% expressed the need for assistance in comprehending homebuying grant programs.
Here’s some valuable information to bridge that knowledge gap.
What Does Down Payment Assistance Entail?
As outlined by The Mortgage Reports:
“Down payment assistance (DPA) programs offer loans and grants that can cover part or all of a home buyer’s down payment and closing costs. More than 2,000 of these programs are available nationwide. . . DPA programs vary by location, but many home buyers could be in line for thousands of dollars in down payment assistance if they qualify.”
Here’s some additional positive information: You likely don’t need to save as much for your down payment as commonly believed. Contrary to popular belief, you usually don’t need to put down 20%, unless specified by your loan type or lender. Therefore, you may not need to save as much upfront, especially with programs aimed at making down payments more manageable. Sounds like a win-win situation.
First-Time and Repeat Buyers Are Often Eligible
It’s important to note that eligibility for many of these programs extends beyond first-time homebuyers. Whether you’re purchasing your first house or your fifth, there could be an option available for you. As noted by Down Payment Resource:
“You don’t have to be a first-time buyer. Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”
Additional Resources for Down Payments That Can Assist
Here are several down payment assistance programs that are currently aiding many buyers in achieving their dream of homeownership.
- Teacher Next Door helps teachers, first responders, health providers, government employees, active-duty military personnel, and veterans achieve their down payment goals.
- Fannie Mae offers down payment assistance to eligible first-time homebuyers in majority-Latino communities.
- Freddie Mac provides options for homebuyers with modest credit scores and limited funds for a down payment.
- The 3By30 program aims to add 3 million new Black homeowners by 2030, offering resources to make securing down payments more accessible.
- Down Payment Resource highlights 42 homebuyer assistance programs across 14 states for Native Americans, easing the path to homeownership with down payment support and other costs.
For more information on these programs, contact a trusted
Benson & Mangold real estate professional .
They can provide detailed insights into available options and get you in contact with lenders that can assist you with programs tailored for specific professions or communities. Even if you don’t qualify for these particular programs, they can help you explore other federal, state, and local options that may be available.
Key Takeaway
Affordability remains a challenge, so it’s crucial to utilize all available resources if you’re looking to buy.
To explore your options, connect with a team of real estate professionals, including a trusted lender and a local agent.
