Down payment programs are offered through a number of different state and local agencies as well as public and private sponsors. Common organizations that offer DPA programs include:
Many people actually! You may qualify for down payment assistance based on your occupation, location, or special household circumstances. Though many DPA programs are designed for first-time homebuyers, there are many other programs that do not have that requirement.
Many lenders consider a first-time homebuyer to be anyone who has not owned a home (primary residence) within the last three years. Some examples or other circumstances that might qualify are:
Grant programs offer help for buyers who are interested in purchasing a home but are not exclusive to just first-time homebuyers. Qualified buyers meeting the program criteria will have no obligation to pay back granted funds.
Because mortgage grants are separate from home loans, some may be combined with other programs to offer a better incentive to buy a new home. Contact American Financing to see if you qualify to combine mortgage programs.
A forgivable loan is a "soft" second mortgage that is forgiven after the homeowner has met certain criteria laid out by the lender such as a period of time the borrower must remain in the home. Once the homeowner has reached the necessary requirements laid out by the lender, the loan is forgiven and the funds do not need to be repaid.
These loans are generally a silent second loan that require the homebuyer to pay back the funds when they choose to refinance, transfer title, or sell the home. They can also be re-paid at a lower percentage rate. These "secondary" mortgages are often used when a borrower needs assistance with the down payment required by the initial mortgage.
Because the requirements vary widely for each program, please contact an American Financing down payment assistance expert to help you search for available programs or help determine your eligibility.
American Financing is a nationwide mortgage lender licensed in all 50 states with access to wide range of home loan programs. Call (800) 910-4055 to speak with a mortgage consultant and we'll help you find the best mortgage for your needs.