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One of the top misconceptions about buying your first home is you need a 20% down payment. You do not have to have 20% down to buy a house. In fact, the average down payment on a house is actually 13%. Moreover, a first-time homebuyer can put down as little as 3%.
Even though first-time homebuyers can make a down payment as low as 3%, it can still amount to thousands of dollars, which may prove challenging to some borrowers. This is why down payment assistance programs exist, to provide support and aid to homebuyers.
“Don’t let misconceptions hold you back from realizing your dream of owning a home…”
The average cost of a home in Texas is $294,336, which means a 3% down payment would be $8,830.08. Coming up with an $8,830.08 down payment for a house can be stressful and often difficult, which is why down payment assistance loans, programs, and grants are available.
Down payment assistance programs are designed to help first-time homebuyers cover the expenses associated with their down payment. Some programs even cover both closing costs and down payments.
There are 2,500 down payment assistance programs available in the form of grants, loans, and other programs. State and local governments, charity organizations, and financial institutions offer other various programs.
Whether or not you qualify depends on your income, credit history, and the program’s specific requirements. An application is usually needed and sometimes, you must take a home buyers education course. These requirements are typically fulfilled in unison with the mortgage loan application process.
The amount you receive can vary depending on the program. Most first-time homebuyers qualify for $2,000 to $30,000* in assistance. When researching programs, check to see how much assistance you can receive, as some programs have a certain dollar amount limit.
Talk to a mortgage loan officer today to determine which down payment assistance program works for you and how much you qualify for.
Grant down payment assistance programs are considered the most valuable because grants provide money in the form of gifts, meaning they typically do not have to be repaid.
A few types of grants:
Most regions in Texas offer different grant programs in addition to the state down payment assistance programs.
To be eligible for down payment assistance, there are two key requirements: a minimum credit score of 620 and an income limit matching the program’s requirements.
Other common requirements:
Sifting through the mortgage options when you’re a first-time homebuyer can be tough. But there are three options that every first-time homebuyer should consider: the FHA, Fannie Mae HomeReady and Freddie Mac Home Possible programs.
Read MoreFederal Housing Administrative (FHA) does not offer down payment assistance; however, FHA loans require lower payments of 5% and cap closing costs at 6%. For FHA loans, working with a down payment assistance program is easy.
As a first-time homebuyer, you can get an FHA loan with as little as 3% down.
Down payment assistance programs are available to first-time homebuyers seeking a conventional home mortgage. TDHC My Choice Texas Home is a government-backed loan that provides a down payment and closing cost assistance of up to 5% of the loan amount.
As a first-time homebuyer, you can put down as little as 3% on conventional loans.
Down payment assistance programs debunk the myth of needing a 20% down payment to buy a house, making homeownership more accessible.
To explore the possibilities and understand how these programs can work for you, take action today and schedule an appointment with a trusted mortgage lender. They will guide you through the process, help you assess your eligibility, and provide valuable insights into the specific down payment assistance programs available.
Don’t let misconceptions hold you back from realizing your dream of owning a home—reach out to a lender and take the first step toward making it a reality.
For more information about our mortgage loan, please visit- Mortgage – Home Loans & Refinance from Texas Regional Bank.
