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If you’re thinking about buying a home, don’t let the down payment hold you back. Down payment assistance programs are available nationwide to provide homebuyers with the funds necessary for upfront costs, allowing homeownership to be possible for more eligible buyers.
Buying a home comes with certain costs. For some loan programs, your down payment is one of the largest upfront costs. ATTOM Data Solutions, a real estate data company, cites the median down payment was $26,250 in the first quarter of 2023.
With high listing prices sweeping across the country, a down payment can be a major roadblock for many perspective buyers. Down payment assistance (DPA) can help you save money upfront and can provide a boost to your long-term financial stability.
There are over 2,000 down payment assistance programs available nationwide. Each program has different requirements, qualifications, and benefits.
State, city, and county housing finance agencies are common providers. However, nonprofits, employers, and mortgage lenders may also grant assistance.
Many down payment assistance programs are aimed toward first-time homebuyers, defined as a person who hasn’t owned a home in the past three years. According to Freddie Mac, 38% of DPA are open to eligible repeat homebuyers. Some programs are designed for specific groups of people based on their income levels, job, and even the area you’re planning to live.
Many DPA programs require homebuyers to take a homeownership education course. This upfront course covers the steps and process of buying a home, financing basics, and homeownership responsibilities. This way, you’re confident and prepared for your homeownership success!
Homestead Funding accepts down payment assistance for eligible homebuyers. Our state bond programs include:
Our new specialty program, HomeReach, combines an FHA mortgage with our exclusive DPA program. With no first-time homebuyer requirements, no income limits, and two options to choose from, HomeReach is perfect for borrowers who want to use minimal out-of-pocket funds.
We recommend searching for programs through the Department of Housing and Urban Development (HUD), non-profit organizations, local government, and the government grant database.
If you’re searching for a down payment assistance program that may work for you, contact us! As many DPA programs are on the local level, a dedicated Loan Originator will have the expertise to find the best opportunities for you.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.