What You Need to Know About Today’s Down Payment Programs

There’s no denying it’s gotten more challenging to buy a home, especially with today’s mortgage rates and home price appreciation. And that may be one of the big reasons you’re eager to look into grants and assistance programs to see if there is anything you qualify for that can help. But unfortunately, many homebuyers feel like they don’t know where to start.

53% of prospective buyers said they need help understanding homebuying grant programs.

So, here’s some information that can help you close that gap.

What is Down Payment Assistance?

Down payment assistance (DPA) programs offer loans and grants that can cover part or all of a home buyer’s down payment and closing costs. More than 2,000 of these programs are available nationwide.

You probably don’t need to save as much for your down payment as you think. Typically, you don’t have to put 20% down unless it’s specified by your loan type or lender. So, you likely don’t need to save as much upfront. There are programs designed to make your down payment more achievable.

First-Time and Repeat Buyers Are Often Eligible

It’s not just first time homebuyers that are eligible for many of these programs. That means whether you are looking to buy your first house or your fifth, there could be an option for you.

Additional Down Payment Resources That Can Help

Here are a few of the down payment assistance programs that are helping many buyers achieve their dream of homeownership, even now.

• Teacher Next Door is designed to help teachers, first responders, health providers, government employees, active-duty military personnel and veterans reach their down payment goals.
• Fannie Mae provides down payment assistance to eligible first-time homebuyers living in majority-Latino communities.
• Freddie Mac also has options designed specifically for homebuyers with modest credit scores and limited funds for a down payment.
• The 3By30 program lays out actionable strategies to add 3 million new Black homeowners by 2030. These programs offer valuable resources for potential buyers, making it easier to secure down payments and realize their dream of homeownership.
• For Native Americans, Down Payment Resource highlights 42 US homebuyer assistance programs across 14 states that ease the path to homeownership by providing support with down payments and other associated costs.

If you want more information on any of these, contact me. I will be able to share more details about what may be available.