Some years ago, there was more than one buyer assistance program available to first time home buyers. However, things have changed a bit since then. All is not lost though, read on and I'll show you.
But first, let me talk about what happened to the awesome programs that many are still trying to investigate.
Just a few years in the past, many charities used to provide assistance,
but a recent law was passed in 2008 that outlawed their use. As a
result, old charities like the Nehemiah Program and the Ameridream
Program can no longer be used.
Perhaps you heard of the Grant American Program. Can you still use this one?
The application process for this buyer assistance program was very simple. It only required having an FHA loan or a pre-approval for an FHA mortgage to qualify for Grant America.
down payment assistance program used to offer up to $34,000 in buyer
assistance. Finally, while participation in this program was never a
prerequisite for inclusion in the contract, the seller still had an
obligation to take part in the Grant America program.
Unfortunately, like the other programs, the Grant America program is not available anymore, which is why it's recommended that first time home buyers get approved for an FHA home loan with a low down payment or one of the grant programs offered by your individual state.
I'll discuss more about this below. But what about the Partners in Charity Program?
People applying for this program could get between 2 percent and 10 percent of the final closing price, in terms of need-based help. Further, the funds could then be utilized for things like a down payment and the required closing costs. During the pre-approval process, said assistance from this program could even be listed as the down payment's source.
Unfortunately, the Partners in Charity program is not available anymore too. This program came with one requirement: They have to have a real intention to actually occupy a building or home that they purchase. In other words, people could not get assistance from this program for merely buying a home they intended to rent. Which made it a cool program.
As you can see, most of the programs that were awesome help in the past are no longer available. So is there any down payment assistance programs today?
The best option is to go with a low down payment program like FHA or investigate the qualifications for the few zero down payment programs out there. Each state offers some kind of assistance for its residents. So, yes, you still can get help.
Some states offer a program that will act like a second mortgage. But the cool thing about it is a zero interest no payment program. The requirement to get that is to stay in the home for a period of time. That's a cool buyer assistance program!
You just need to see what your state's housing authority offers. Below I'll provide a link to help you.
FHA is an awesome option too. I bought my first home that way and I was never sorry.
So don't get discouraged with the loss of the big buyer assistance programs. Get your hands dirty by digging into what's available in your locality.
Would you like to see what your state offers? Click here, then go down to your state for your research.
Be sure to check out First Time Home Buyer Loans to understand what other loan options are available.
Zero Down Home Loans is a great option to investigate also.
Go to House Buyer Solutions Home Page.
Aug 05, 19 10:44 PM
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