If you're like most first time home buyers, you need a solution to the problem of getting your down payment together right? Hey, don't worry, you're not alone.
The best thing for you is that you found the right place to locate assistance for first time home buyers.
Below, I will help you learn how to tell the difference between a down payment assistance program and a first time home buyer grant.
There is a big difference and you need to understand this as you move forward in the home buying process.
Ok, it's very important for you to realize that the very name of these first time home buyer programs have a misleading title. I don't know about you but when I hear the word assistance, I think of someone that will be helping me. Is that how you understand it?
I thought so, but when using assistance for first time home buyers like this, it does help you, but the help actually comes from yourself. Now why would I say that? Try to look at it from the mortgage underwriters point of view for just a moment.
Take a look at the video below as it will explain what I mean.....
The underwriter who is looking at your mortgage application, can see that you do not have the down payment requirement needed to buy a home. Then they have to look at the loan guidelines to see what it allows when it comes to getting help with a down payment.
Very few loan programs allow down payment assistance or DPA, however the FHA loan 203(b) which I talk at great length about here on this site does allow the use of DPA programs.
These loan programs allow people like yourself to go out and sign up for first time home buyer assistance. With the FHA 203(b) loan you can get this help in 3 different ways.
The subject of this page is item number two, the way a charity can help you with a down payment. If you want to learn more about home buying grants or how gifts from a family member can be used, just look below. At the bottom of this page you will find links to other pages that explain them in detail.You may be wondering if you might qualify for an FHA program like the one mentioned above? Find a lender that understands how down payment assistance programs work with the FHA home loan. It may be worth your time to get some quotes.
The underwriter has direction from the Feds that a charity is allowed to contribute up to 3.5% of the sales price of your house when using an FHA loan. So if we use the sales price of say $100,000 that would be $3,500 that a non-profit charity can put into your mortgage transaction.
Now you may we wondering, how can I find this assistance for first time home buyers and do I have to pay it back? Well hold on for a minute and I will tell you.
Many of these DPA programs were around like Nehemiah and Ameridream just to name a few. However on October 1, 2008 the Federal Government passed a law into effect where these particular programs cannot be used anymore. Nice huh??
Don't worry because you can still get help with your down payment, it will just require a bit of searching and hard work on your part. Just look at it this way. If it took you say 20 hours to locate a charity, meet their requirements for a gift of say $3,500 would it be worth it to you? Of course it would. That would be like earning $175 an hour.
So the good news is, because I have done the research for you, it will take much less time than that. Just keep reading my good friend. I'm here to help you.
Since the assistance for first time home buyers is different in every state, I will have to put it in general terms. Your own research will help you know the exact details for your community.
Basically you have to look at it like this. A local charity that is authorized by the Federal Government to make donations or conditional loans has to be used.
Before this law passed on October of 2008, you could simply sign up with any national organization that made these donations. Now they are prohibited from doing this so you have to work a bit harder to get the help you need.
But as I told you, I would help you with the process. So what you will need to do is visit my pages on first time home buyer grants. They will teach you how to drill down in the HUD website to find your local charity.
Assistance for first time home buyers can be found on the pages linked below. Feel free to browse these pages all you want. Are you looking for help with your down payment? Then trust me when I say that assistance for first time home buyers can be found. You will need to work for it is all.
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In order to understand how down payment assistance programs work, read the page First Time Home Buyer Grants - How Can This Help You?
Another page you may enjoy about down payment assistance programs and grants would be Free Government Grant Money - Yes You Can Find It?
You can also read up on other down payment options available.
Has someone offered you help for your down payment and are wondering how to use this? Learn more about how to use these money gifts with your mortgage.
Go to House Buyer Solutions Home Page.
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