How to Get Down Payment Assistance For First Time Home Buyers

Down Payment Assistance is Available.

If you are a first time home buyer you may qualify for down payment and closing costs assistance to help you purchase a home. Even in this economy there are many programs available to help you qualify. The down payment assistance may come from the federal government, the state government, local or municipal government or directly from the lending institution. Today there are programs that offer $3,000 to $40,000 or more as down payment assistance to purchase a home as a first time home buyer. The key is to work with a lender who knows the programs and have the ability to offer you the down payment and closing costs assistance.

Difficulty: Moderately Easy

Instructions

1. First Time Home Buyer.
   
   If you are a first time home buyer you may qualify for assistance. The definition of a first time home buyer is someone who have not owned a home in the last three years. This qualification is usually verified by reviewing the borrowers income tax for the last three years. If they have not claimed home ownership on their taxes the borrower is considered a first time home buyer.

2. Qualifications for Down Payment Assistance.
   
   Most programs require the borrower be have low to moderate family income. Moderate income is considered 80% or less than the median income for the metropolitan area as determined by the HUD. Low income borrowers make 70% or less of the median income for their area, while very low income families are below 50% of the median income. Some programs will give you more assistance based on the income and size of your family.
   
   Another way to qualify for down payment assistance might be by buying in a low income census tract. Some programs want to revitalize an area and they may offer assistance just because the home is in a targeted area.

3. Choose The Right Team.
   
   Many lenders and loan originators claim to have a first time home buyers program. Most of them do not offer down payment assistance. In fact if they do many loan officers do not offer the programs because they require much more work with little or no additional compensation. In fact the loan officers typically make less money on these deals because the loan size are lower. So it is important to work with a loan originator who offers the down payment assistance programs, understand them and want to help you qualify for the assistance.

Resources

• First Time Home Buyer Programs
• Down Payment Assistance Programs

[ljstraight]

on 8/18/2009 You summed it up. 5 stars