Buying a home with down payment assistance is not as difficult as some people likely think. Some people are not aware of the programs available or do not think they qualify for down payment assistance. Discover how you can potentially buy a home with little money down, how to access programs that offer assistance that you may not know exist.
Few homebuyers take advantage of down payment assistance
Thousands of programs exist to help with down payment assistance. A primary issue with these programs is not in qualifying, however. A primary issue is that few people are aware of the programs. Another issue is that people do not apply because potential homebuyers simply assume they will not qualify. Still others do not know how to find down payment assistance.
Bankrate points out, “Homebuyers can still get mortgages with little to no money down if they know where to look.” Receiving down payment help is much easier than many potential homebuyers likely think. In fact, Realty Trac explains “87 percent of U.S. homes qualify for down payment help.” That is great news for individuals and families looking to buy a home.
Realty Trac looked at nearly 2300 down payment programs, concluding that of 78 million homes in nearly 1800 counties, that 87 percent of those homes and condos likely qualified for down payment assistance. That great news continues, especially for new homebuyers just exploring and entering the market, with Realty Trac explaining that 91 percent of the “2,290 programs in our registry have funds available to lend to eligible buyers.”
How do I find a down payment assistance program?
Down payment assistance programs exist for homebuyers of nearly all income levels. One important fact to consider is the fact that down payment assistance is not just for people with lower incomes. Deborah Holloway, a loan specialist in Florida, explained to Bankrate that down payment assistance help is not just for individuals or families in lower income brackets.
For example, a buyer can qualify for up to five percent of the purchase price of a home, when the home buyer makes $98,000 annually, in one Bankrate example.
In June 2016, Realty Trac and Down Payment Resource analyzed the impact of taking advantage of down payment assistance on the cost of buying a home. Their report determined that a buyer can potentially save nearly $18,000, representing more than 40 per cent of annual wages, compared to homebuyers that do not take advantage of programs offering help for a down payment.
Federal, state and county down payment programs exist to help buyers with down payment assistance. Additionally, programs exist to help specific buyers, such as the disabled or veterans. Veterans are another group who often do not know about assistance available to them, according to Market Watch.
Down payment assistance tips for homebuyers
Whether you are a first-time homebuyer or looking for your next home, consider these tips:
- Only search reputable sites to avoid scams
- Speak with mortgage lenders at the beginning of the process, advises Bankrate
- Search a variety of down payment assistance programs to determine the best one for you and your situation
Jodi Bakst, Broker-Owner of Real Estate Experts based in Chapel Hill, NC, is known for her internet marketing skills and bringing the best service and systems to her buyers and sellers.