What is down payment assistance?
Down payment assistance programs can help eligible buyers cover part of the down payment or certain closing costs. Assistance may come from state housing agencies, cities, counties, nonprofits, employers, or other approved organizations. It can be structured as a grant, forgivable second mortgage, deferred-payment loan, or repayable second lien.
Not every assistance program is “free money”
Some programs do not require repayment, while others create a lien that must be repaid when you sell, refinance, or stop occupying the home. Forgivable programs may require you to remain in the home for a specified period. Compare the assistance amount with the repayment terms, first-mortgage rate, fees, and long-term flexibility.
Who may qualify?
Eligibility can depend on household or borrower income, purchase price, property location, first-time buyer status, credit, debt ratios, and occupancy. Homebuyer education is common, and funding can change as program budgets are used or renewed. A program that was available last year may have different terms today.
Start early
Assistance needs to be compatible with your first mortgage and closing timeline. Identify possible programs before writing an offer so your lender and real-estate professional understand the requirements. RentingSucks.com advisors have access to dozens of down payment assistance programs and can help screen options in the state where you want to purchase.
Upfront cash may not be as big a barrier as you think.
Find out whether assistance or a low-down-payment mortgage could help move your plan forward.
Assistance funds and eligibility are subject to program availability, underwriting, income, property, geographic, and other requirements. No assistance is guaranteed.