One of the biggest difficulties for first-time buyers is saving enough money for a down payment and closing costs. In this article we will look at the option to get the down payment assistance you need to buy your first home.
A down payment is the initial partial payment you make upfront when you purchase a house, while closing costs are the fees that are paid at the closing of your real estate transaction for items such as the appraisal, inspection, title search and credit check. These costs can vary widely.
How much you need to put down on a house is determined by the type of loan you get. Homebuyers may be required to pay 20% of their home’s purchase price with many traditional mortgages, although some government-backed mortgages such as FHA may require much less, or VA loans for eligible military require none.
The bigger the down payment, the more likely that you will be approved for the mortgage, in addition to the advantages of smaller monthly payments, less interest expense, and greater immediate equity in your home. If you don’t have enough for the down payment and closing costs, you might be able to use gifted money if that’s available to you.
However, down payment and closing cost challenges vary by region. If you are in California, the good news is that these costs are no longer the obstacle that they used to be with the availability of programs for down payments and closing cost assistance. 1 Stop Lending can help by offering several outstanding options for down payment and closing cost assistance.
One option is a secondary assistance loan, with payments that are deferred so you don’t have to make a payment on this assistance until your home is sold, refinanced or paid in full. This can help to keep home ownership within reach and your monthly mortgage payment affordable.
Another fantastic opportunity offers first-time homebuyers a jump on immediate equity in their homes a through a zero percent interest loan of up to 10% of the purchase price of their home, and the loan is forgivable if the borrower continuously occupies the home as their primary residence for five years!
At 1 Stop Lending, we work tirelessly to find the best option for you. After nearly two decades in the industry, you can rest assured that we are knowledgeable professionals with the expertise and attention to detail that you deserve.
If you are interested in learning more about down payment assistance programs available for you, we are just one phone call, text or email away from answering any questions you have.
Please visit https://1stoplending.net for more information.