Every month you pay rent on a home that will never be yours. It’s like dumping money down the drain. You would rather be making a mortgage payment each month, if only you could save up for a down payment. With down payment assistance programs, you may not have to.
Understanding Down Payment Assistance Programs
Down payment assistance programs help you get into the home you want even if you haven’t been able to save toward a down payment. They have a wide range of qualifications, depending on the program you are interested in. Most are income-dependent, meaning you must make under a certain threshold to qualify.
Second Mortgages
You may be able to integrate a second mortgage into your financing package to cover the down payment amount. Although you will pay interest on this money, it can help you avoid PMI payments.
Gifts
Some programs also allow you to use gift funds for a down payment, providing they are actual gifts and will not need to be repaid.
You Might Not Need Assistance
There are plenty of mortgage programs that do not require a huge down payment. You may want to consider looking at one of these loan programs if you have put away some savings toward a new house.
FHA Loans
Mortgages that are guaranteed by the Federal Housing Authority have low down payment requirements, sometimes as low as 3.5 percent of the purchase price. Plus, you can use gift funds for any portion of that amount.
VA Loans
If you have served in the military, you may qualify for a VA loan with up to 100 percent financing.
USDA Loans
Buyers in specific rural areas may also be able to finance their total purchase as part of their primary mortgage.
Learn More About Down Payments and Mortgages
With all of the mortgage choices, you want to make sure you understand each and every down payment assistance option available to you, or if you need to worry about finding assistance in the first place. Contact the knowledgeable team at Bjornson Mortgage today to find the right mortgage and down payment assistance program for your needs.
