5 Facts you Didn’t Know About Down Payment Assistance Programs

5 Facts you Didn't know About Down Payment Assistance Programs | bog.phmc.com

The struggle is real for Americans seeking to buy their first home. Saving for a down payment still holds the number 1 spot for obstacles when looking to purchase a home. Let’s face some of the facts:

  • 70% of renters cite the down payment as a greater barrier to home ownership than debt, job security and qualifying for a mortgage
  • 20% down payment on a home costs more than two-thirds of the U.S. median household annual income
  • One in five renters now say they have no interest in ever owning a home
  • Almost 40 million Americans “live in housing they cannot afford”

More often than not, anyone reading the above statistics won’t be that shocked because they were once a part, know someone who is, or are currently a part of those statistics. For those able to relate in any way, shape, or form, what you choose to do next is CRUCIAL. Don’t throw in the towel just yet because there are options for aspiring home owners unable to save for a down payment:

There are approximately 2,400 down payment assistance programs available for aspiring homeowners all over the US. and 70% of middle-class Americans are unaware!

5 Facts about down payment assistance you didn't know 1. They aren't just for low-income individuals and families. Though there are programs with income requirements, not all of them focus on lower-income buyers. These are made for working Americans ready to take part in the American Dream! 2. High-cost areas have available down payment assistance programs too. No need to rule out high-cost areas. There are programs out there that are adjusted based off of a percentage range of the area’s median income and home prices. In some cases, high cost areas may actually qualify for more down payment assistance than a lower cost area! 3. You don't have to be a first-time buyer. Some assistance programs may target first-time homebuyers only, but if you aren't, don't lose hope yet. These are types of programs that allow repeat buyers as well, so it is important to do your research before giving up. Also, there are down payment assistance programs geared towards first-time buyers that will consider you as a first-time buyer again if you have not owned a primary residence within the last 3 years! 4. Down payment assistance programs generally vary by the state or county you are purchasing in. Different cities and counties offer different assistance amounts based on income and median home values in that given area. Many states offer DPA programs in the form of grants or tax credits. Grants are great because the amount given does not necessarily need to be paid back. Depending on the area you live in, the assistance received can either be a flat dollar amount or a percentage of the purchase price--usually between 1-10%. 5. Lenders must be approved to underwrite and originate down payment assistance programs. Platinum Home Mortgage has been approved in many states across the United States to offer down payment assistance programs. We have a team of professionals constantly looking for new program information in all 50 states to better serve all homebuyers. Find this image on blog.phmc.com

Click here to download Real Estate Tips for Beginner Investors by Talia Ramos, a successful independent Chicagoland real estate investor.

Take the next steps towards owning a home!

 

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