Easy Guide to Down Payment Help in the USA
- Author: Margaret Hills
- Posted: 2024-11-25
They're special support systems to help you pay for this upfront cost of buying a home, and sometimes they also help with other fees like closing costs.
DPA programs might give you grants (free money) or loans with little to no interest. Some loans don’t need to be paid back until you sell or refinance your home.
There are thousands of these programs all over the country, run by local or state governments, and the rules can vary based on where you live. Most of the time, they are for first-time home buyers, folks with incomes that aren't too high, and you'll need a decent credit score.
If it's been three years or more since you had a house, you might still be considered a 'first-time' home buyer. Different programs have their own checklists you need to meet, like income limits and whether the home is your main living place.
There are some common types of help you can get:
- Grants: Money given to you that you don't have to pay back.
- Loans: These are like a second mortgage; you pay them back monthly along with your primary mortgage.
- Deferred loans: These are loans where you don't have to make payments right away but you pay it all back if you sell or refinance your home.
- Forgivable loans: These are loans that get erased as time goes on, as long as you stay in the home for a certain number of years.
You can usually find information about DPA programs online by searching for your area, and your lender can also help you see if you qualify.
Bottom Line
Remember, each state has its own set of offerings, so look up your state or speak to a housing counselor to understand what's available to you. HUD also has a list of possibilities for each state that you can explore.
Nonetheless, if you're considering buying a home and the costs seem too high, don't worry! There's a good chance a down payment assistance program is waiting for you.
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