Top 5 Down Payment Assistance Programs for First-Time Homebuyers – Did You Know Them? Buying a home for the first time is a difficult task. It involves lots of terminologies, fees, and people involved in it. Most of the people think it is an easy way that involves just signing of few documents. But, you must ask yourself what have you thought about financing? Most of the banks finance a maximum of 85% of the total loan amount. You have to pay for the down payment in order to start the loan EMIs. For first-time homebuyers, paying the down payment is a tough task. Here are few programs initiated by government and private bodies to provide you an assistance in down payment, if you are a first-time homebuyer. You can choose the one most favorable for you from the list below:
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Federal Housing Administration (FHA) - Most of the first-time homebuyers go for this program, especially the ones who have a bad credit history. The FHA lends a certain portion of the loan amount, which broadens their acceptability for loans. The borrowers
can qualify for loans up to 3.5% down payment. You have to pay a mortgage loan premium as an additional payment if you go for FHA loan programs. Good Neighbor Next Door- An initiative of the Housing and Urban Development (HUD), this program was originally known as Teacher Next Door Program. Later, as an initiative for law enforcement, firefighters, and emergency medical technicians it was expanded. It provides 50% discount on the listed price of homes in areas set for renewal if the buyer commits to staying for at least 36 months. USDA- This is the most exciting one in the list. The United States Department of Agriculture presents a buyers’ assistance program too. Just like the Good Neighbor Next Door Program, you can get the down payment assistance if you choose to stay in a rural area for its growth and development. It provides 100% financial assistance through mortgage guarantees. VA Loan Scheme- The U.S. Department of Veterans Affairs provides financial assistance to personnel currently in service, veterans, and surviving spouses. These are generous programs which often require no down payment or mortgage insurance. Fannie and Freddie- This sounds more like one of those ‘70s rock bands but it was named after Fannie Mae and Freddie Mac. It is a government approved company which works with the local lenders to provide down payment assistance of up to 3% of the total amount.
If you are looking for first-time homebuyers down payment assistance, the aforementioned list will come in handy.
Source: https://storify.com/nwrochester/top-5-down-payment-assistance-programs-for-firstt