Three Resources For Down Payment Assistance
The 2015 Profile of Home Buyers and Sellers, published by the National Association of Realtors, noted that the most difficult step in the process of homeownership was saving for the all-important down payment. What’s more, upwards of 70 percent of prospective homebuyers don’t realize that down payment assistance programs exist for low-income and middle-income consumers. The following assistance options are far from exhaustive – there are more than two thousand programs nationwide – but they represent a few of the multitude of options available to prospective buyers who are willing to ask for help.
National Homebuyers Fund Grant Program
The NHF is a non-profit specializing in expanding home ownership opportunities. They offer a down payment assistance grant for up to 5 percent of the total loan amount. The grants do not need to be repaid, and they are not limited to first-time home buyers. Learn more here.
VA Loan Program
Qualified veterans, active-duty service members and certain members of the National Guard and Reserves may be granted government-backed mortgage loans that require no down payment at all. There is no mortgage insurance required, and interest rates are typically below the market median. Visit the VA for more information.
USDA 100 Percent Financing
The United States Department of Agriculture offers single-family home loans in rural areas that may be financed at 100 percent of the purchase price, meaning there is no cash down payment required up-front. “Rural” covers more than just typical farmland, too, making USDA loans an option for prospective buyers in small-city markets, too. Learn more by visiting the USDA program site here.
In addition to the programs listed above, many states have government-sponsored down payment assistance plans, as do community banks. If the hurdle of a down payment is preventing you from purchasing a home, speak with a real estate finance professional to learn more about your options.
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