Menu
Buying a home has become increasingly challenging with today’s mortgage rates and rising home prices. This might be why you’re eager to explore grants and assistance programs to see if you qualify for any help. However, many prospective homebuyers don’t know where to start.
A recent study by the Bank of America Institute asked potential buyers where they feel they lack confidence and need more information. Here’s what topped the list:
53% said they need help understanding homebuying grant programs.
Here’s some information that can help bridge that gap.
What Is Down Payment Assistance?
According to the Mortgage Reports:
“Down payment assistance (DPA) programs offer loans and grants that can cover part or all of a home buyer’s down payment and closing costs. More than 2,000 of these programs are available nationwide. . . DPA programs vary by location, but many home buyers could be in line for thousands of dollars in down payment assistance if they qualify.”
Additionally, you may not need to save as much for your down payment as you think. Contrary to popular belief, you typically don’t have to put down 20% unless specified by your loan type or lender. Therefore, these programs can make your down payment more achievable, providing a win-win scenario.
Eligibility for First-Time and Repeat Buyers
It’s important to note that these programs are not exclusively for first-time homebuyers. Whether you’re buying your first home or your fifth, you may qualify. According to Down Payment Resource:
“You don’t have to be a first-time buyer. Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”
Where to Start
If you’re interested in learning more about possible programs, the best place to start is by reaching out to a trusted real estate professional. They can help connect you with the right lender who can provide details about available programs to fit your needs. Even if you don’t qualify for these types of programs, they can help you explore other federal, state, and local options.
Bottom Line
Affordability remains a challenge in the homebuying process. To ensure you’re taking advantage of all available resources, connect with a team of real estate professionals, including a trusted lender and a local agent. They can guide you to the programs and assistance that can make your dream of homeownership a reality.
