Downpayment Assistance Program
Down payment Assistance Programs are designed to
help first-time homebuyers and low-to-moderate
income individuals purchase a home by providing
financial assistance for the down payment and in some
cases closing costs. These programs often come in the
form of grants, 2nd mortgages or in some cases
forgivable loans, and are typically provided by
government agencies, non-profits, or local housing
authorities. They aim to make homeownership more
accessible to those who may struggle to save for a down payment.
Scenarios and Potential Applicants:
- First-Time Home buyers who have steady income but not enough savings for a down payment.
- Low-to-moderate income individuals or families seeking to transition from renting to owning.
- Buyers in high-cost areas where saving for a down payment is particularly challenging.
- Those who qualify for a mortgage but need help with upfront costs.
Requirements:
- Often restricted to first-time home buyers or those who haven’t owned a home in the past three years.
- Income limits based on the area median income (AMI) to qualify.
- Some programs don’t have income limits.
- Completion of a homebuyer education course.
- The property must be used as the primary residence.
- Existing homeowners may qualify for down payment assistence, with some restrictions.
