In the current real estate climate, securing a home has become a daunting task due to rising mortgage rates and home prices. This situation has sparked interest among many in exploring available grants and down payment assistance programs. However, finding a starting point can be overwhelming for prospective homeowners.
A recent Bank of America Institute study revealed that many prospective buyers are unsure about how to navigate homebuying programs, with 53% expressing a need for more information on this topic.
Here’s some guidance to help you close that knowledge gap.
Understanding Down Payment Assistance
According to The Mortgage Reports:
Down payment assistance (DPA) programs offer loans and grants that can cover part or all of a home buyer’s down payment and closing costs. More than 2,000 of these programs are available nationwide. . . DPA programs vary by location, but many home buyers could be in line for thousands of dollars in down payment assistance if they qualify.”
Furthermore, it’s encouraging to note that the traditional requirement of a 20% down payment is often not necessary unless specified by your mortgage type or lender. Therefore, the initial amount you need might be less than you think, with numerous programs tailored to facilitate attainable down payments. Sounds like a win-win.
Eligibility for First-Time and Seasoned Homebuyers
It’s crucial to note that down payment programs are available not just for first-time buyers. Whether you’re purchasing your first home or your fifth, many programs may have options for you, as pointed out by Down Payment Resource.
You don’t have to be a first-time buyer. Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”
Additional Resources for Down Payments
Several down payment programs are making the dream of homeownership more accessible, even in today’s market:
- Teacher Next Door: Assists teachers, first responders, healthcare providers, government employees, military personnel, and veterans in achieving their down payment objectives.
- Fannie Mae: Offers down payment support to first-time homebuyers in predominantly Latino communities.
- Freddie Mac: Provides options, particularly for those with modest credit scores or limited initial funds.
- 3By30 Initiative: Aims to add 3 million new Black homeowners by 2030 through actionable strategies and resources
- For Native Americans, Down Payment Resource identifies 42 assistance programs in 14 states that support homeownership by aiding with down payments and other costs.
For further details on these and other programs, the best first step is to consult with Linda Craft Team Realtors.
We can provide more information on Triangle Area lenders, and what’s available, including programs tailored to specific professions or communities. Even if you don’t qualify for these, we can guide you to other federal, state, and local options worth considering.
Key Takeaway
Despite ongoing affordability challenges, if you’re in the market to buy a Raleigh home, leveraging every possible resource is important. Contact Linda Craft Team Realtors to discover what down payment programs are available to you and how you can benefit from them.