In today’s very competitive housing market, a great number of buyers are putting down around 20% of the purchase price to give their offer an advantage. But the reality is many first-time buyers who finance a home do not have that cash on hand. In fact, many would-be buyers put off buying a home because they can’t afford the down payment. The good news is you may qualify for a down payment assistance program through state and local government agencies. Luxury Mortgage offers assistance with DPA programs in conjunction with our mortgage products.
What Is Down Payment Assistance?
Put simply, it helps buyers cover the cost of a down payment. A down payment is a percentage of a home’s purchase price that you pay up front when you close your mortgage. Down payments can be as much a 3%, 20% or even higher depending on a buyer’s financial scenario. And though the percentage varies, for many, coming up with that money isn’t always easy.
Down payment assistance comes from grants, loans or other types of programs from local or state housing authorities or non-profits.
Who Qualifies to Receive DPA?
DPA programs are restricted to first-time homebuyers. However, most programs will consider someone a “first-time buyer” if they haven’t owned a home in the past three years.
What are the Eligibility Requirements?
Though requirements vary by program and location, eligibility is primarily determined by income and credit history. There may be other requirements like income maximums, purchase price caps, location of the property, and the number of years you plan to live in the home.
What Are Some Common Programs Used in Conjunction with DPA?
DPA is used in conjunction with an approved mortgage program. Luxury Mortgage works with home buyers in multiple states, and we help borrowers explore different state and federal down payment assistance programs that work in conjunction with our mortgage products. We offer FHA, USDA, and VA home loan programs that are all designed to help first-home buyers make homeownership a reality.
How Much Assistance Do I Get?
The amount will differ from program to program and state to state. Some offer a percentage based on the sale price of the home and others offer a specific dollar amount.
How do I apply?
It’s a straightforward process and we can help you! Connect with one of our licensed mortgage professionals today to learn more about Down Payment Assistance. We’ll review your scenario and explore the available options in your area.
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