Likewise, many of these potential homeowners believe that you need a daunting 20 percent down payment to be able to buy your first home, so they already deem themselves ineligible without even trying. But the silver lining is that 61 percent of first-time buyers who purchased a home through a mortgage from December 2016 to November 2017 actually made a zero to 6 percent down payment, as reported in the NAR November 2017 Realtors Confidence Index.
And yet, coming up with a 6 percent down payment can still prove challenging for many — especially for low to medium-income earners, new graduates who are still paying student loans, single parents, or those who are still recovering from credit card debt. To help you kick-start your home buying process, here’s a list of grants and loan assistance programs you could check out to help you afford a mortgage to get your dream home.
FHA loans could greatly benefit those who want a home but have little or no money saved for a down payment; including students who just graduated from college, newly married couples, and also those who have had credit problems in the past because of foreclosure or bankruptcy.
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The NHF offers two DPA programs — the NHF Sapphire program and Golden State Finance Authority Platinum program — both have different sets of requirements but are for low to moderate-income earners.
Through the support of these companies, local lenders can offer competitive interest rates and appealing mortgage options, including down payments as low as 3 percent of the purchase price.
In Texas for an instance, the My First Texas Home Program offers a 30-year fixed-rate loan with closing cost and down payment assistance equal to 5 percent of the loan amount (up to $8,000), but a minimum credit score of 620 is required. While in Colorado, a buyer with a minimum credit score of 680 can qualify for a 30-year purchase loan with a down payment as low as 3 percent and no mortgage insurance, through the CHFA Advantage Program.
Check with your lender or your local real estate agent to know the list of housing grants and programs available in your state/area, and know the best program for which you are eligible and might apply to your situation.
