Down Payment Resource
Down Payment Resource
Did you know the average down payment assistant benefit is more than $8,000? That could be a significant jump start to buying your first home (or second). And who wouldn’t want a boost to their down payment savings?
Homeownership programs can help you get into a house much more quickly and give you a valuable cash cushion for those other expenses, like the home inspection and home repairs. You could save on your down payment and closing costs or even get ongoing tax credits.
WHO QUALIFIES FOR DOWN PAYMENT ASSISTANCE?
First, its vital to know that there are two components- both you and the home you are buying must meet specific criteria, which vary by program. By simply clicking on my Down Payment Assistance link, (have it hyper activated) this tool allows you to answer a few simple questions to determine if you and the home you want to buy, meet the basic qualifications for the program.
WHAT ARE THE CRITERIA FOR A BUYER?
Finances Matter. Household income thresholds, credit score minimums, and cash reserve requirements. Income thresholds based on the area median income- up to 120% in high-cost markets. Income limits are based on household size, so limits for a family of five are significantly higher than for a singe person.
Most down payment assistance programs will require some money down from the home buyer, as well as homebuyer education, especially for the first-time home buyers, to ensure your long-term homeownership success.
First-time homebuyer status
Many down payment assistance programs are designed for the first-time home buyers. Keep in mind that first-time homebuyers are defined as someone who has not owned a home in three years, so if you’ve been renting for the past three plus years, you’re a first-time home buyer!
Additionally, not all programs are reserved for first-timers- roughly 37% of programs in Down Payment Assistance don’t include that requirement.
Your career may help
More than 14% of down payment assistance programs are designed for individuals providing a critical community service, including educators, protectors, health care workers, and veterans. Especially helpful in high-cost markets, the programs help workers live in the community they serve.
Must be your primary residence, and investors need not apply. Most housing agencies will require that the home is occupied as a primary residence to qualify. Down Payment Assistance programs are eligible for single-family homes, townhomes, and condos. Some multifamily properties are allowed if the buyer is also an owner occupant.
Home sales price
Down payment assistance programs home sales price criteria are typically set based on a percentage of the area median home price. It means the home price limit can go from $250,000 to over $700,000 in specific high cos markets.
Programs are available everywhere
Many homes buyers mistakenly believe down payment assistance programs are available only in a very narrow area. On the contrary, programs are available in most communities across the country and often for homes at price ranges above the median sales price for a given area.
Different areas qualify for other programs. Down Payment Assistance allows for search by city, country and neighborhoods to help narrow your search.
Bottom Line
The down payment assistance criteria can very greatly, so investigate the options for your situation.
