Ignite FB Tracking PixelDown payment assistance options for first-time homebuyers - Kristine Stell
RE/MAX Destinations & RE/MAX Southern Shores
Kristine Stell, RE/MAX Destinations & RE/MAX Southern ShoresPhone: (802) 782-2834
Email: [email protected]

Down payment assistance options for first-time homebuyers

by Kristine Stell 05/29/2024

Affording a down payment on a home can be a major hurdle in the homebuying process, but luckily, there are down payment assistance options to help. With a down payment assistance program, first time homebuyers can get better mortgage terms and afford the house of their dreams.

Here is the most important info about these assistance programs for buyers to know:

How do down payment assistance programs work?

Down payment assistance programs are provided by a variety of institutions, including local government agencies and nonprofits. If you're eligible - decided based on household income, credit history and other factors depending on state - you can either receive a grant or special type of loan to pay for your down payment.

What are the different types of down payment assistance?

There are several types of assistance programs to help new buyers with a down payment:

  • Grants
  • Forgivable loans
  • Deferred-payment loans
  • Low-interest loans
  • Matched saving accounts

Grant programs offer monetary assistance without expectation of repayment. Other programs like forgivable loans or low-interest loans can serve as affordable second mortgages to cover the cost.

Who is eligible for assistance?

Eligibility requirements for down payment assistance programs depend on the individual program. Generally, you need a good credit score and a stable debt to income ratio. Some other requirements include:

  • The home must be in a specific location or county.
  • You must live in the home for a minimum amount of time (usually 3 to 10 years).
  • You have to be a first-time homebuyer.
  • You have to take a homebuyer education class.

How to apply for down payment assistance

The availability of down payment assistance is different in every area of the country. Check online or with a loan officer for eligibility requirements, applications and details.

Should you consider applying for a down payment grant or other assistance program? Remember these key points when factoring the option into your financial decisions. 

About the Author
Author

Kristine Stell

I’m dedicated to helping my clients find the home of their dreams. Whether you are buying or selling a home or just curious about the local market, I would love to offer my support and services. I know the local community — both as an agent and a neighbor — and can help guide you through the nuances of our local market. With access to top listings, a worldwide network, exceptional marketing strategies and cutting-edge technology, I work hard to make your real estate experience memorable and enjoyable. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you. [email protected] or [email protected]