Down Payment Assistance: How It Can Help You On Your Path To Home Ownership
Is owning a home a goal of yours? Perhaps you are trying to save up for your down payment, and it may seem as though your dreams of home ownership are a mere dream. You may feel as though raising the capital for your down payment and closing costs are the biggest obstacles you face. There are down payment assistance and closing costs assistance grants that you could qualify for. The following are a few ways that these programs benefit people in situations similar to yours.
Most of these grant programs have education pre-requisites that applicants must meet. You will likely have to take classes that will educate you on home ownership. The classes cover the various aspects of home ownership. For example, you will likely learn about financing and other aspects of owning a home. These classes will benefit you because understanding everything that is involved in buying a home will equip you to be successful on your journey. This means that you could likely avoid pitfalls such as falling behind on mortgage payments and putting yourself at risk for foreclosure.
Having the funds for your down payment can aid in you getting into your home sooner than you would if you had to save the money up yourself. Perhaps you are planning to buy a "fixer-upper" home and have some money already saved. If you qualify for assistance, it is possible to have funds for your remodeling plans as well as your down payment. You could also benefit from using the money you have saved as an emergency fund to ensure that you are prepared if anything unexpected occurs and interferes with your cash flow. An example of a situation that would warrant having access to extra cash is a costly unexpected home repair.
Offset FHA Premiums
FHA loans are a common loan option for individuals who are purchasing their first home. This is due to the attractive low down payment options that FHA loans afford some consumers. Perhaps you will find out that you are a consumer that has to pay a higher down payment if you qualify for an FHA loan. Your down payment assistance can be used to offset this unexpected higher premium requirement.
A real estate agent can be used as a resource to understand more about down payment assistance programs in your area. If you plan to explore this option, it is ideal to research programs in your area as well as the estimated costs of homes that meet your criteria. It will give you an idea of the prices of homes in your market as well as the typical amount of assistance you can expect if you qualify for a program.