Down Payment Assistance Programs
What To Know About Down Payment Programs
There are many down payment assistance programs available and program availability, rules, and terms can vary and change constantly. While most programs have limits on income, there are some that do not. Most also have geographical limitations, but there are a couple state wide programs and even nationwide. I will work with you to determine how much is needed to utilize the best program(s) available to get you into your new home!
The Give and Take with Down Payment Programs
As the saying goes, nothing good comes free. Well the same is typically true with down payment programs. Most of the programs available have terms less favorable than if you didn't need to utilize assistance. Often, terms depend on the amount of assistance received. For example, if you elect to receive 3.5% in down payment assistance, you may have an interest rate .50% above market rate and at 5% assistance, you may have a rate 1% above market. However, depending on where your new home is located, there may be a program available that would allow use of market rates. Regardless of the program used, one constant is that these programs do add another layer to your approval which will slow down turn time. Depending on the program, it typically isn't much but it is worth noting and the program will have to be approved by the lender and underwriting. So be sure to keep that in mind when deciding if a down payment program is right for you.