Don’t Miss Out on the Growing Number of Down Payment Assistance Programs
With rising home prices and volatile mortgage rates, it’s important you know about every resource that could help make buying a condo or home possible. One thing you’ll want to be aware of is how much the number of down payment assistance (DPA) programs has grown lately.
Take a look at the graph below to see how many new programs have been added in the last year, according to data from Down Payment Resource:
More Programs, More Opportunities for You
So, what does this increase mean for you? With more programs available, there’s a higher likelihood that one of them could help you reach your homeownership goals.
And these programs aren’t small-scale help either – the benefits can go a long way toward covering a chunk of your costs. As Rob Chrane, Founder and CEO of Down Payment Resource, shares:
“We are pleased to see a growing number of these programs, and think they are becoming a targeted way to help first-time and first-generation homebuyers struggling to save for a down payment get into a home they can afford. Our data shows the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.”
Imagine being able to qualify for $17,000 toward your down payment. That’s a big boost, especially if you’re looking to buy your first place. With that level of help, buying a condo or home may be more within reach than you think.
But it’s worth calling out that the growth in DPA options isn’t just focused on first-time and first-generation buyers. Many of the new programs are also aimed at supporting affordable housing initiatives, which include manufactured and multi-family homes. This means that more people, and a wider variety of home types, can qualify for down payment assistance. This will make it easier for you to find an option that fits your needs.
Talk to a Real Estate Expert About What’s Available for You
With so many DPA programs out there, you need to make sure you’re finding the right one for you. That’s why it’s key to lean on your real estate and lending professionals for guidance. The Mortgage Reports says:
“The best way to find down payment assistance programs for which you qualify is to speak with your loan officer or broker. They should know about local grants and loan programs that can help you out.”
A great loan officer will know what’s available in your area and can point you toward programs that align with your goals. We work with some fantastic lenders and can help match you with the perfect one.
Bottom Line
With more down payment assistance programs than ever before, now’s a great time to explore how these options can help on your homebuying journey. Let’s work together to make sure you’ve got a team of expert advisors in place. Contact us today at The Bouma Group, Realtors at 734-761-3060 or info@bouma.com.
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What You Need to Know About Today’s Down Payment Programs
Down Payment Programs Aren’t Just for First-Time Homebuyers
There’s no denying it’s gotten more challenging to buy a condo or home, especially with today’s mortgage rates and home price appreciation. And that may be one of the big reasons you’re eager to look into grants and assistance programs to see if there’s anything you qualify for that can help. But unfortunately, many homebuyers feel like they don’t know where to start.
A recent Bank of America Institute study asked prospective buyers where they lack confidence in the process and need more information. And this is what topped the list:
53% said they need help understanding home-buying grant programs.
So, here’s some information that can help you close that gap.
What Is Down Payment Assistance?
As the Mortgage Reports explains:
“Down payment assistance (DPA) programs offer loans and grants that can cover part or all of a home buyer’s down payment and closing costs. More than 2,000 of these programs are available nationwide. . . DPA programs vary by location, but many home buyers could be in line for thousands of dollars in down payment assistance if they qualify.”
And here’s some more good news, you probably don’t need to save as much for your down payment as you think. Contrary to what you may have heard, typically you don’t have to put 20% down unless it’s specified by your loan type or lender. So, you likely don’t need to save as much upfront, and there are programs designed to make your down payment more achievable. Sounds like a win-win.
First-Time and Repeat Buyers Are Often Eligible
It’s also worth mentioning, that it’s not just first-time homebuyers that are eligible for many of these programs. That means whether you’re looking to buy your first house or your fifth, there could be an option for you. As Down Payment Resource notes:
“You don’t have to be a first-time buyer. Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”
Additional Down Payment Resources That Can Help
Here are a few down payment assistance programs that help buyers achieve their dream of homeownership:
- Teacher Next Door is designed to help teachers, first responders, health providers, government employees, active-duty military personnel, and Veterans reach their down payment goals.
- Fannie Mae provides down payment assistance to eligible first-time homebuyers living in majority-Latino communities.
- Freddie Mac also has options designed specifically for homebuyers with modest credit scores and limited funds for a down payment.
- The 3By30 program lays out actionable strategies to add 3 million new Black homeowners by 2030. These programs offer valuable resources for potential buyers, making it easier to secure down payments and realize their dream of homeownership.
- For Native Americans, Down Payment Resource highlights 42 U.S. homebuyer assistance programs across 14 states that ease the path to homeownership by providing support with down payments and other associated costs.
If you want more information on any of these, the best place to start is by contacting a trusted real estate professional.
We’ll share more details about what may be available, including any other programs designed to serve specific professions or communities. And even if you don’t qualify for these types of programs, we can help find out if there are any other federal, state, and local options available you should look into.
Bottom Line
Affordability is still a challenge, so if you’re looking to buy, you will want to make sure you’re taking advantage of any and all resources available.
Connect with us at The Bouma Group at 734-761-3060 or info@bouma.com and let’s explore your options!