What is holding you back from buying a new home? Is it credit, timing, finding the right property? How about the down payment? For a lot of folks the daunting 20% of a down payment is beyond their ability to handle. What if I told you that you could qualify for down payment assistance? It sounds crazy but it’s true.
According to RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today released a joint analysis with Down Payment Resource on the availability of down payment programs across the country, which found that 87 percent of U.S. homes qualify for down payment help.
RealtyTrac looked at 2,290 down payment programs from Down Payment Resource’s Homeownership Program Index and found that out of more than 78 million U.S. single family homes and condos in 1,792 counties with sufficient home value data, more than 68 million (87 percent) would qualify for a down payment program available in the county where they are located based on the maximum price requirements for those programs and the estimated value of the properties.
Almost 2,300 programs out there! That is both incredible and exciting for people looking to get into a house.
The biggest problem with these programs is that most people simply don’t know about them. The other problem is most people don’t think could qualify for the money. This is not the case. In most situations incomes higher than the median income level can qualify. This supports the figure of 87% of U.S. home qualify for these types of programs.
What if you can’t get this down payment money?
If you’ve applied and been denied through one of the 2,300 programs, have no fear. This isn’t the only rodeo in town.
There are things like:
Delayed repayment loans
These are interest free loans that don’t have to be repaid until the borrower sells the house.
Interest free loans
In some states you can get an interest free loan that can be used for a down payment. Usually terms apply but you don’t have the expensive interest fees on top of it.
Where To Start?
Before you get into to applying for any of these programs or loans, your best course of action is to get your financial house in order. Pay down as much debt as possible. Not only will this help your credit score but it will free up money that you can use towards the house. Check your credit report and clear up any discrepancies that may be on it.
Now that you have your finances in order, check with the Housing Authority of your state. They typically have these down payment assistance programs available on their website along with a list of lenders. Do check with the Down Payment Resource as mentioned earlier in this article.
Lastly, ask your agent what programs they know about. Our agents keep up-to-date with the latest programs, lenders, etc and can help guide you through the process of securing a low cost down payment.
Don’t let the down payment scare you. There is help out there, you just have to ask for it.