In many cases a monthly mortgage payment would be comparable to what you are paying in rent only you would be working toward owning something and you would be getting value for your money. The only problem is the down payment. It used to be easy to find a lender who would finance a 0% down mortgage, but in today’s economy most companies want a 20% down payment. If you are strapped for cash or struggle to accumulate a significant amount of savings then you may think a house is just something you can’t do. However, finding help with down payment to buy a house isn’t impossible!
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There are a lot of different programs out there known as down payment assistance programs. Many states, counties, and or cities have some sort of program. These programs are set up to help you low to moderate income families. Often times knowing that the help is there somewhere doesn’t really help though. To find out more about these programs you should contact a real estate agent, your lending agent, or local colleges and university.
To qualify for these types of programs you will need to meet income requirements. You will need to make sure that you can qualify for a mortgage if you have a down payment. This usually requires that you have a good job history, that you make enough money to meet your bills including a monthly mortgage payment, that you have an acceptable credit score, and that you pay your bills on time each month. The idea is that you will have to qualify for a mortgage when you get help with down payment to buy a house.
Most programs will require a single person to make $24,000 or less, a family of 2 to make $27,000 or less, a family of 3 to make $30,000 or less, and a family of 4 to make $34,000 or less. Some programs adjust these numbers according to averages within their geographic area, but it gives you an idea of when you will find the most help according to the number of dependants you have. If you are not very far from the top of that region according to the number of dependents that you have then you should ask around to see if you can get help. Also if you have more than four dependants you should find out how that works in your area. Often the larger a family is the more money it has to make and therefore the cut off for low income and middle income help is higher.
Help With Down Payment to Buy a House - FHA
An FHA loan on its own won’t give you a down payment. However, if you qualify for an FHA loan then you can purchase an FHA home for 3.5% down rather than the traditional 20% down. This on its own can be a lot of help because you will need a lot less money down to buy a house. For example a $100,000 house needs a $20,000 deposit with a traditional loan and a $3,500 deposit with a FHA loan.
Additionally FHA works with a lot of non-profit organizations that can help with down payment to buy a house. By working with your real estate agent to get an FHA loan you may also qualify for a number of down payment assistance programs in order to get money for the reduced down payment. Most of these programs are available for first time home buyers or those who haven’t owned a home in the last 3 years. Some of the programs include Quickdown, The Responsible Home Ownership Program, and the Housing Action Resource Trust (HART) Program.
Help With Down Payment to Buy a House - Taking a Loan
There are some assistance programs that will lend you the money for a down payment at a low interest. This will require that you make enough money that you can afford to pay your mortgage and your loan at the same time and usually on a monthly basis. These programs are often used when grants and assistance programs aren’t available. You should also talk with your real estate agent and lender to find out more information on loans in your area that are available to use as help with down payment to buy a house.
Unfortunately assistance with your down payment is based on where you live. You can’t find a neat list on the Internet and apply for help there. Instead it is done locally and help is usually applied for after you have found a house and are working toward financing it. None the less, help with down payment to buy a house is available for low to moderate income families. If you can qualify for a mortgage (minus the down payment) and you just need some money to put down on the house then there is help for you!