Buying a home has undoubtedly become more challenging, especially with today's mortgage rates and home price appreciation. And that may be one of the big reasons you’re eager to look into grants and assistance programs to see if you qualify for anything that can help. But unfortunately, many homebuyers feel like they don’t know where to start.
A recent Bank of America Institute study asked prospective buyers where they lack confidence in the process and need more information. And this is what topped the list:
53% said they need help understanding home-buying grant programs.
So, here’s some information that can help you close that gap.
What Is Down Payment Assistance?
As the Mortgage Reports explains:
“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.”
And here’s some more good news. On top of these programs, you probably don’t need to save as much for your down payment as you think. Contrary to what you may have heard, typically, you don’t have to put 20% down unless specified by your loan type or lender. So, you likely don’t need to save as much upfront, and there are programs designed to make your down payment more achievable. Sounds like a win-win.
First-Time and Repeat Buyers Are Often Eligible
It’s also worth mentioning that it’s not just first-time homebuyers who are eligible for many of these programs. That means whether you’re looking to buy your first or fifth house, you could have an option. As Down Payment Resource notes:
“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 Down Payment Resources That Can Help
Here are a few of the down payment assistance programs that are helping many buyers achieve their dream of homeownership, even now:
- Teacher Next Door is designed to help teachers, first responders, health providers, government employees, active-duty military personnel, and Veterans reach their down payment goals.
- Fannie Mae provides down payment assistance to eligible first-time homebuyers living in majority-Latino communities.
- Freddie Mac also has options designed specifically for homebuyers with modest credit scores and limited funds for a down payment.
- The 3By30 program outlines actionable strategies to add 3 million new Black homeowners by 2030. These programs offer valuable resources for potential buyers, making it easier to secure down payments and realize their dream of homeownership.
- For Native Americans, Down Payment Resource highlights 42 U.S. homebuyer assistance programs across 14 states that ease the path to homeownership by providing support with down payments and other associated costs.
If you want more information on any of these, the best place to start is by contacting a trusted real estate professional.
They can share more details about what may be available, including other programs for specific professions or communities. And even if you don’t qualify for these types of programs, they can help you see if there are any other federal, state, and local options available you should look into.
Bottom Line
Affordability is still a challenge, so if you’re looking to buy, you’ll want to make sure you’re taking advantage of all available resources.
The best way to find out what’s out there is to connect with a team of real estate professionals, including a trusted lender and a local agent.
