Understanding Down Payment Assistance Programs

17 March 2016
 Categories: Real Estate, Blog

You found your dream home and you believe that you can make the monthly mortgage payment. However, the one hurdle you struggle to overcome is the down payment. Because of your very high rent, you just aren't able to accumulate enough wealth to make the recommended down payment for the type of home you prefer. However, you may be surprised at the down payment assistance programs you might be qualified for.

Determining If You Are Eligible

Down payment assistance programs are available and are usually linked to one's income. Typically, whether you qualify is based on the average income of the area you live in. Therefore, if you live in a wealthy area, you will be more likely to qualify even if you have a higher income. Also, whether you qualify is based on what your income is combined with how many individuals will live in your home.

Receiving Assistance From An Employer

Ask your employer if they will provide you with a down payment assistance program. There are many employers who will help their employees make a down payment as a way to encourage employees to live closer to their place of work. This is especially true if your office is located in an upscale area.

Contacting A Local House Finance Agency

The first place you should look for down payment payment assistance is your local housing finance agency. To receive down payment assistance, you will need to be able to secure private financing on your own.

Working With HUD Counselors

The Department of Housing and Urban Development has housing counselors who are sometimes authorized to provide down payment assistance. Even if they do not provide down payment assistance, they can direct you to a program that does.

Receiving Help From A Non-Profit Organization

If you absolutely have no idea where to work, consider asking a real estate agent. If there are non-profit organizations that provide down payment assistance, a real estate agent will likely be aware of this.

The Advantages Of Receiving Assistance

Obviously, it is beneficial to pay a smaller percentage of your down payment. But another benefit is that you will be able to afford a larger down payment. The larger the down payment, the less you will owe on the home and the less you will have to pay in interest overall. Therefore, you should do whatever possible to find the best down payment assistance programs. Contact a business, such as Exit Trinity Realty, for more information.