Worried that you cannot afford the down payment on a home? Here is some good news: If you are a first-time homebuyer, you might qualify for down payment assistance provided through a government agency or private organization.
Down payment grants are designed to help eligible buyers bridge the gap between their savings and the required down payment for a mortgage.
The programs typically define a first-time buyer as one who has not owned a home for the past three years. Some local programs target certain groups, such as teachers, police officers, emergency responders, or city employees, while others are open to qualified repeat buyers as well
Most down payment programs require the recipient to participate in a homebuyer education and counseling components, often through a HUD-approved counseling agency. The HOMETRACK Online Homebuyer Education Course and our virtual counseling services are HUD-approved.
A RealtyTrac survey in 2016 found the average saving for a homebuyer using down payment assistance was $17,766 in total.
According to the survey:
According to the study, borrowers saved money when they closed. But they then continued to do so. That is because they owed less on their mortgage and had lower monthly payments
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