October 28, 2024

How Down Payment Assistance (DPA) Helps You Move Up Sooner

Even though there are several popular mortgage products that don’t require a large down payment, there are still would-be buyers who worry about their ability to afford a home. If this is you, down payment assistance could help you buy without worries and sooner. There is a wide range of down payment programs available, and many states have their own down payment loan or grant program, and some cities and counties do as well.

There are several types of assistance available, although not all types are available in all areas.

Down Payment Grants

• Repayment of the down payment grant portion may not be required if you follow the guidelines.
• Usually, you must live in your new home for at least five years.

Forgivable Loans

• Also known as “silent seconds,” these are zero-interest second loans that go toward your down payment.
• Like grants, these may be “forgiven” after five years.

Low-Interest Loans

• Although these require repayment, they’re designed to make homeownership more affordable by enabling buyers to spread their initial costs over five to 10 years.

Deferred-Payment Loans

• Generally, while payments are still required on the first loan, no payments are due on the second loan until the home is sold, or the mortgage is refinanced or repaid in full.

Down payment assistance is one of several strategies that make homeownership more affordable for both first-time and repeat buyers.

Give us a call to learn about your DPA options, including lower down payment requirements for first-time homebuyers.

Here’s a list of the states and DPA programs we offer at Directors Mortgage:

 www.directorsmortgage.com/down-payment-assistance/

Source: Directors Mortgage