Down Payment Assistance

Down Payment Assistance

One of the most unique features about FHA loans is the opportunity to use down payment assistance to help home buyers get the funds needed for the required 3.5% down payments, as well as additional funds due to cover closing costs. FHA loans allow down payment assistance & certain home loan grants but they must come from approved sources. Those sources are usually state or federal programs geared towards neighborhood stabilization, other government or underserved class opportunities, or to assist low to moderate income households achieve the dream of home ownership. The programs are usually specific to the local market and are administered through local HUD approved non-profit agencies.

Benefits of Down Payment Assistance:

  • Provides funds for down payment and closing cost
  • Can be used to reduce final loan amount & resulting mortgage payment
  • Grants, or other down payment assistance, is often given as free funds after a period of time
  • Required home buyer courses educate homeowners
  • Funding makes home ownership possible
  • Interest rates & costs are monitored and must be reasonable

How to determine if you qualify:

Because these programs are specific to local markets please contact us to review the available programs and specific qualifications. In general these programs are for first time home buyers, buying a home to live in, and may have certain income restrictions.

Down Payment Assistance Process:

  • Contact FHA Loan Group to discuss down payment assistance programs in your area
  • Get pre-approved for the FHA financing required for the purchase of the home
  • Schedule your home buyers class with the designated non-profit to become eligible for the down payment assistance
  • Meet personally with the Non-Profit organization’s counselor to get approved for program participation
  • Select a real estate agent to help you purchase a down payment assistance program qualified property
  • Secure the purchase contract to purchase the home you want
  • Work with us from FHA Loan Group to get financing completed
  • Become a home owner
FHA Loan Group can help you get the lowest home mortgage interest rates available today. We also provide FHA Streamline refinance programs, first time home buyer FHA loans, FHA cash out refinance mortgage loans, and more.
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