If you are thinking of buying your first home getting financial assistance is really helpful. No wonder there is a lot that will be going into the decision. Not only do you have to think of what kind of home you want and where, but there are financial issues that you need to consider as well such as your financial situation, your credit score, your ability to take out a loan, and deposits. A lot of people feel that the down payment is the hardest part to deal with.
A large sum of money can be quite hard to come by. The good news is that you might be eligible to find a loan program. These programs will allow for the use of gift funds, assistance, and even first-time buyer speciality programs that can help you achieve your goal of becoming a homeowner. Here are our tips on getting financial assistance on your down payment:
Check out assistance programs
If you want to become a homeowner and think it can never happen because you don’t have 20% to put down on it, there are many programs that can help reduce or even sometimes eliminate the need for a down payment completely. They will often do this in the form of silent or interest-free mortgages that do not need to be repaid until the home has been sold, refinanced, or completely paid in full.
Depending on each program and your income, you may be able to get some assistance or an affordable second mortgage. Keep in mind that programs will also vary depending on your state and city. Find out where you can get assistance by researching online or asking a real estate agency.
Learn how gift funds work
If you have a family member or close friend who is looking to help you achieve your dream of home ownership, there are many different loans that will allow a different percentage for gift funds. It is good that you learn about the different types of loans that might work for you and your situation.
Not every loan will require 20% down, and there are multiple options that have their own requirements for down payment amounts. FHA loans are government loans and might be the most ideal type of loan for first-time homebuyers. With this type of loan, you can get a down payment as low as 3.5% and gifted. The FHA works to make homeownership possible for more people.
There are also VA loans to help veterans, active military soldiers, and even surviving spouses. This will allow these people of any of these statuses to obtain the home of their dreams. There are VA loans available that offer 100% financing, meaning that many veterans can borrow up to 100% of the home’s value.
USDA loans are derived from a government-backed program that offers 100% financing but only for those qualified. Such a loan is a good option for first-time buyers that are looking for an option with no down payment. This might be suitable for new buyers looking at property options that are in rural areas. The loan does come with very specific eligibility requirements, including the location of the property.
Speak to a loan adviser
Saving up for a down payment can be overwhelming, but you can get help when it is needed. Consider seeking and speaking to a loan adviser. They might be able to help you out by assessing your situation and providing guidance for your individual issues. They will have experience in this field and will be the best person to help you effectively get you a loan or your down payment while ensuring that it is paid for with a flawless plan.