If you're a home buyer and...
If you're concerned about coming up with a down payment...
The Millam Real Estate Group wants you to know there are programs available for qualifying new home buyers (and buyers who haven't purchased a home in more than 3 years) that can help you come up with your down payment requirement and fulfill your dream of homeownership.
Most buyers don't realize there are Down Payment Assistant Programs offered through the county, state, or federal levels. These programs can offer up to $15,000 in down payment assistance.
Although the qualification requirements and availability will vary from area to area, each one typically falls into one of five groups and will have a few similarities such as creditworthiness, maximum household income, or minimum occupancy time requirements.
Here are the most common five down payment assistance programs:
- The Interest Rate Reduction - is a discount on your mortgage loan's interest rate through discount points paid directly to your lender
- The Down Payment Grant - is money granted to a homebuyer to use as the down payment as long as you agree to stay in the home at least 5 years
- The Tax Payment Reduction - is a variation of the traditional down payment assistance program, this reduces the home buyer's annual tax obligation to the
goverment and more in their savings - The Closing Cost Reimbursement - is a grant of cash to reimburse the cost of closing at time of closing you most likely won't have to pay back if you're in the home at least 3 years (in some locations)
- The Down Payment Loan - usually doesn't require payback if you stay in the
home more than 5 years, and include a 0% interest rate
Again, there are special qualifying factors and additional rules and restrictions for each. Additionally, there are a limited number of funds distributed each year, so some of these programs may not be available in the area you're looking at buying. This is why it's important you work closely with your REALTOR® and a trusted lending professional who has experience in these programs.
Before you assume a home buying goal is out of your reach, make sure you contact the Millam Real Estate Group to help you better understand your individual buying power this year!
*Every market is different. Every home is different. Contact Lori Millam for more about current market statistics or a home market evaluation when you're ready to sell.
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