16 May The Top Three Down Payment Assistance Program, Myths!!!
What are the top three down payment assistance program myths?
If you are like most people you are researching the various options for a down payment assistance program before contacting a broker or lender. We feel it is important that you have best information available before making a decision. The Z Mortgage Team takes great satisfaction on helping each client make informed decisions. Now on with the details…
Myth #1 – Most programs are difficult to qualify for
The important thing is do research while early in your home buying process as well as reviewing what is required on the application. Each program has both qualifications for the property and for the home buyers. You might find that location, sales price, income and property location are part of the standard criteria. Often you’ll find that there are additional benefits for example if you are a veteran or a household with a disabled individual. Another important aspect is that home buyers need to demonstrate that they are financially responsible. There are cash reserve requirements and credit score thresholds. You’ll find that many of the programs require a little money down and an education program especially for first-time .
Myth #2 – Funded assistance programs are no longer available
False. In fact, there are hundreds of millions of dollars available around the country which include; down payment assistance, grants, tax credits and affordable first mortgages. There is a different funding schedule for each. Some programs are government-funded and are provided through municipal, non-profits or other agencies. There are even privately funded or employer sponsored programs. Each state has its own unique collection of programs.
Myth #3 – Down payment assistance programs are only for first-time home buyers.
False. Most programs do not specify that you must be a first-time home buyer. Also, the definition for the majority of programs for a first time home buyers is someone that hasn’t owned a home in three years. So if you owned before and are currently renting, you might qualify. All programs are for home buyers and not investors. To qualify most housing agencies require that the home is occupied as a primary residence. In certain areas home buyers may receive special benefits such as higher assistance amounts, more favorable income requirements and the first-time home buyer requirement may be waived. Sometimes Veterans will be often eligible for a first-time home buyer waiver.
If you need further guidance or answers about a particular down payment assistance program feel free to reach out to the Z Mortgage Team. We’ve already helped hundreds of first time home buyers realize their dream of home ownership, and look forward to assisting you!