Tap Into Little Known Sources for Down Payment Help
Tap Into Little Known Sources for Down Payment Help
Accumulating down payment money for a house is important, but can be challenging, especially for millennials bogged down in massive student loan debt. But don’t despair. Help is available through down payment assistance programs — in other words — free money.
The Federal Housing Administration, or FHA, along with the Veterans Administration (VA) and some other government-backed loan programs already provide the opportunity to qualify for a mortgage for much less than 20 percent down. These government-backed programs are well known to lenders and real estate agents.
Lesser known are the down payment assistance programs around the country. These programs are designed to help you meet minimum down-payment requirements or make homeownership more affordable by adding to what you have already saved. They are often, but not always, restricted to first-time homebuyers. Each state administers its own program with its own requirements.
The money available could be a grant or a loan. You will be required to live in the home a certain period of time, often 36 months.
Down payment assistance programs are targeted at low- to moderate-income homebuyers, but some middle income buyers may qualify. In some states, qualified homebuyers must earn at or below 80 percent of the median income for the area. Some states allow an income at more than 100 percent. The cost of the home also figures into the equation. Some states set the amount available to you at a percentage of the cost of the home being purchased, while other states set a specific dollar cap.
A little more help. Fannie Mae offers a first-time homebuyer program called Home Path Ready Buyer with help amounting to 3 percent of closing cost assistance in exchange for taking a financial management education course.
Another program not limited to new homebuyers is the multi-state program from the National HomeBuyers Fund which offers grants for down payments or closing costs.
Author:Nara Rakhmetova, MBA Phone: 202-491-5629 Dated: September 14th 2018 Views: 28 About Nara: My name is Nara Rakhmetova, I am a full time real estate consultant, specializing in Northern VA are...
View our latest blog posts in your RSS reader. Click here to access.
My name is Nara Rakhmetova, I am a full time real estate consultant, specializing in Northern VA area. I love my job and take every client's real estate needs personally. Many clients I helped in the past return to me when they again need to buy or sell, as well as send me their friends and family members. Introducing new technology into my services is very important to me. I am the only agent in the area offering Virtual Reality House Hunting service. Ask me how you can see homes for sale in Virtual Reality mode or list your home in VR mode. I take the stress out of the home buying or selling process and make the experience memorable and happy one. I do hope to get to help you as well.
"Nara Rakhmetova represented me and my wife in our first-time home purchase in Falls Church, VA that closed in June 2017. From the moment I first reached out to Nara back in March till the closing date and beyond, Nara was absolutely the most professional, knowledgeable, and helpful agent we could ever hope for.
For the reader’s sake, below I outline Nara’s critical strengths with specific facts and examples from our home-buying experience.
1) Speed. Nara does everything super fast. The day I first called Nara we already had a house in mind we were ready to bid on. Nara judged correctly that that house would sell very quickly and made herself available to meet with us the same night at 8pm. Within an hour and 15 minutes we went over and signed our agreement with her and the entire offer contract. The same night Nara sent our offer to the seller. Another example is Nara would almost always return my emails/texts/calls within minutes. When she was once with another client when I called her, she texted me back in two minutes saying she would call me back later.
2) Putting the customer above all else. Nara was available for us 24/7 and she would get out of her way to offer us the best service. Also, on a regular basis she checks to make sure her preferred lenders, home inspectors, etc. are still offering competitive pricing and drops those that are not anymore, thus saving money to her clients.
3) Clarity. A combination of Nara’s knowledge, experience, and communication skills results in her clarity in communication. For us newbies, it was really important to understand well all the steps, who does what when and why. Nara would explain all facets of home buying for us in clear and simple terms. Her emails were clear and concise.
4) Knowledge and experience. During our house viewing tour, Nara would immediately bring weak spots in the house to our attention. She would often give us a cost estimate of the problem. Over the years, she surrounded herself with a network of connections in mortgage lending, home inspection, etc. and that’s critical to the overall process efficiency. For example, I had a great interaction with the lender Nara referred me to, and the title company and the home inspector, both recommended by Nara, did their part great, too.
5) Flexibility. From day one, Nara said she would be totally fine working with whatever lender, home inspector, or title company I would prefer. She did recommend a great loan officer she’s been working with for years but after some really intensive mortgage shopping on my end, I eventually chose a different lender, and Nara again said no problem. Things were not going quite smoothly with my lender and on multiple occasions Nara would step in and get the ball rolling again adding to my confidence that we would close on time, which we did.
Soon after closing and moving, we received a thank you letter from Nara and a bunch of return address stickers she thoughtfully prepared for us. If only all the people in the world did their job as great as Nara does, the world would be a much better place."