Everyone dreams of having their own home but some are not able to do so because they cannot afford the usual 20 percent down payment for buying a house. A down payment assistance is a program that aims to assist home buyers in purchasing a home even if they do not yet have the total amount of the down payment.
Most states have this program, but many non-profit organizations also offer such a program.
Qualifications For Down Payment Assistance
There are many down payment assistance programs in Ogden provided by institutions such as Wasatch Peaks Credit Union, but the conditions may vary from state to state or from lender to lender. However, there are basic rules on the qualifications such as it has to be your first-time to buy a home.
You should also take into consideration that some programs put restrictions on the location and kind of home you can purchase. Furthermore, you may not be able to qualify if you make more than the program's income threshold or if you do not meet the lender's credit standards.
Benefits Of Down Payment Assistance Programs
This program has many benefits, but the most notable one is it allows you to purchase a home even if you do not have enough money for the down payment. Even if you do have the money, paying the total amount of down payment up front could drain your savings leaving little for emergencies or house repairs.
It is also possible to combine a down payment assistance program with your FHA loan to help offset its mortgage insurance and premiums. Borrowing less mortgage loan means you do not have to pay high-interest rates for the duration of the loan.
There are many down payment assistance programs available in the U.S., and it is a great way to purchase a home in Ogden even if you do not have enough money for the down payment. Sadly, there are still many home buyers who are not aware of this program.