What is Down Payment Assistance and How Can it Help?
Saving enough for a mortgage down payment can be difficult and discouraging. The amount of money paid upfront is usually a requirement; the amount depends on how much you want to see your mortgage reduced, your credit score, and other qualifying factors. The average applicant makes a down payment of about 6%, which, based on a purchase price of $148,527, amounts to $8,912. That seems an insurmountable obstacle to some prospective buyers, but there is an option to assist you an reaching your goal.
Difficulties of saving for the down payment
The task of saving for a home mortgage down payment can be daunting, especially in this day of soaring home prices and rising rental costs. According to Zillow, the leading real estate marketplace , a typical renter could take up to 27 years to save enough for a 20% down payment on a starter home. Opting for a loan that accepts as low as 3% down payment will abbreviate that period to more like 4 years, an achievable goal. Assistance from family or friends, or cashing in on retirement savings are options that may further accelerate the process.
Benefits of a Down Payment Assistance Program
- 600 FICO credit score minimum
- Flexible debt-to-income approvals
- Loan amounts per county limits
- First Time homebuyer & Repeat Buyers OK
- Seller contributions up to 6%
- DACA Borrowers eligible
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