Down Payment Assistance For 1st Time Home Buyers

Down Payment Assistance For 1st Time Home Buyers

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Down Payment Assistance For 1st Time Home Buyers

With paying rent every month, how in the world would I ever save money for a down payment on my first house? Ive read that coming up with the money for a traditional down payment, which is 20% of the purchase price, is the largest hurdle facing first time home buyers (myself included!) Fortunately, I found that there is help available in the form of down payment assistance. Many states and counties have set up agencies to provide special programs to help potential 1st time buyers overcome the hurdles in buying their first house. At the top of that list is down payment assistance.

Many states provide outright cash grants for the down payment, while others will provide a low or zero interest mortgage loan to cover the down payment. Some of those loans will automatically convert into grants and never have to be repaid if you remain in the home for a length of time. This is typically 5 years. Thats not bad at all! If a state agency is going to give me 15 grand for a down payment, Ill live in the house for 5 years so that I dont have to pay the money back. That seems like a great deal to me.

After a short while searching online, I found information in each state which has contact details for how to get down payment assistance. In most instances, these down payment assistance programs make it possible for first time home buyers to afford a mortgage when they would not be able to do so the normal way. In many states, the programs provide substantial or even total down payment assistance. Without these programs, thousands of people who get first time home buyer loans annually would not be able to do it.

About the Author:
J Stromsteen has many years experience in the finance, real estate, and insurance industry. She contributes to the website First Time Home Buyer where you can find state by state information on Down Payment Assistance.



Article Originally Published On: http://www.articlesnatch.com


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