Downpayment Assistance

 

Often, homebuyers are plagued by the perception that certain loan programs are difficult to qualify for or are not accepted by sellers or lenders. Down payment assistance programs fall into this category despite their flexibility and benefits. “Down payment assistance programs help the homebuyer increase their affordability as well as help individual communities maintain and retain affordable housing inventory in their geographic location,” said Tonya Todd, Senior Vice President of Affordable Housing Programs at Mountain West Financial.

 

Let’s take a look at the top 3 myths about down payment assistance and the reality behind them:

Myth #1: Down payment assistance programs are only for first-time homebuyers.

First-time homebuyers are considered to be anyone who has not owned a home in 3 years. Not all programs specify that you must be a first-time homebuyer; however, most agencies require that the home be a primary residence as assistance programs are for homebuyers and not investors. Homes in specific target areas may be eligible for additional benefits such as more assistance, less income requirements and no first-time homebuyer requirement.

 

Myth #2: Assistance programs are no longer funded.            

There are hundreds of millions of dollars in down payment assistance, affordable fixed-rate mortgage, grants, tax credits and rehab loans. Many of the programs are public and privately funded. Most states also have a collection of programs at the state and county level as well.

 

Myth #3: Down payment assistance programs require longer closing timelines.

Buyers can work ahead to complete homebuyer education courses and other requirements in order to keep their loan process on track. As long as the buyer is prepared and all lines of communication are open between the program agency, lender, and Realtor during the home loan process, you will be able to meet your desired time expectations.

 

Down payment assistance helps bridge the down payment gap for homebuyers. Using a web-based tool like www.mwfinc.com/dpr, homebuyers can search by city or address for public and private-funded down payment assistance programs. Powered by Down Payment Resource, this web tool connects potential homebuyers with valuable resources they may not have otherwise known existed. “Today, homebuyers have access to a wealth of information online. It’s critical to begin investigating all your home financing options, including down payment assistance, as early in the process as possible, preferably, before you begin to search for homes. The information you learn may help you narrow your search area or price range,” said Rob Crane, President of Down Payment Resource. Homebuyers can quickly access a list of available programs for which they might qualify and where Mountain West Financial is a participating lender.

Tonya Todd of Mountain West Financial, Inc. continues “We are excited to expand the awareness with Down Payment Resource and feature valuable programs in our market, some that are under used.” If you’re interested in purchasing or refinancing a home, make sure to find out what down payment assistance options are available for you and your home.

 

 


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.