If you're in the market to buy your first home, but know you'll need some help with your down payment or closing costs, assistance may be right under your nose.
In fact, there are hundreds of resources available for well–qualified, first–time homebuyers to obtain funds for down payment and closing costs. Who provides this assistance and how? The state, county and city governments that oversee the community you hope to call home have thousands of dollars to help aspiring homeowners through:
Grants: Funds that you do not need to pay back as long as you own and live in your home for a specific period of time.
Second mortgage loans: The most common down payment source, these have low or no interest rates and the payments are deferred over a specific time period.
Tax credits: Certain states and local governments, including Housing Finance Agencies, issue mortgage credit certificates which reduce the amount of income tax you pay, thus giving you more available income upfront to make your down payment or pay for closing costs.
Where to Start?
- Reach out to your lender or a certified Housing Counselor and ask them about state and local down payment assistance programs.
- Do your own homework by researching the city, county and state programs in the area where you wish to call home and find out what type of help is available. A directory of state, county, local, and municipal programs is available online through the U.S. Department of Housing and Urban Development (HUD).
- Check out Down Payment Resource's tool, allowing you to check your eligibility and pinpoint local programs that may be able to assist by simply answering a few questions about you and the home you wish to purchase.
Remember that thousands of dollars of homebuying assistance is out there for qualified homebuyers. Reach out today and remember that hard work and perseverance pays off.
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