Coming up with the money to pay for a down payment can be one of the biggest obstacles that stands in the way of people’s dreams of homeownership. Thankfully, there are options available for those who need to get financial assistance before they’re able to purchase their new home. We’re providing 4 ways that you can get financial assistance to help you with your down payment.
Down Payment Assistance Programs
There are thousands of down payment assistance (DPA) programs available throughout the U.S. that were created to help make homeownership a possibility for a larger number of Americans. These programs can often save those who qualify over $15,000 on down payments, and they’re available in over 500 counties nationwide. Qualifications can depend on a variety of factors, including income, occupation, the location of the home, and whether or not you’ve owned a home in the past three years. Some involve loans that must be paid back after paying off your mortgage, often with zero-interest, but others offer grants that never have to be repaid!
FHA Loans and USDA Loans
The Federal Housing Administration (FHA) provides lenders with the needed insurance to offer loans to those who may not qualify for DPA programs, such as those with lower credit scores. Lenders are able to offer these loans to a wider variety of people because the government protects lenders if borrowers are unable to make their payments. The U.S. Department of Agriculture (USDA) provides zero down payment mortgages as an incentive for more to move into rural and suburban homes. Through the USDA Rural Development Guaranteed Housing Loan program, those in need of financial assistance will find it much easier to afford a new home.
Receive Gifts from Family or Friends
The IRS allows up to $15,000 to be gifted without either the donor or recipient having to pay taxes on it. The generous donor would not only be helping you, but they’d also be eligible to receive a tax write-off from the donation. You could also ask to borrow money and work out a repayment schedule, which, if you include interest, may be in the donor’s favor in the long run. If you’re also getting a separate loan, be sure to look into what percentage can come from gifts.
Speak with an Experienced Mortgage Lender
There are so many programs and loans available that figuring out how to get financial assistance can be complicated. The best way to be sure that you’re getting the maximum amount of financial assistance from the wide variety of opportunities available is to discuss your options with experienced mortgage consultants.
Get Financial Assistance with Your Down Payment
Clearview Realty helps home buyers in Colorado qualify for down payment assistance so they can purchase their new home. Since specific qualifications vary for each program, we encourage you to call us for more information to see if you will qualify. Our number is (720) 217-5731, or you can send us a message.