BlueWater Realty of Pine Island, Inc
Donna Gilles, BlueWater Realty of Pine Island, IncPhone: (239) 425-5426
Email: [email protected]

Options for down payment assistance buyers should know

by Donna Gilles 10/17/2022

Affording a down payment on a home can be a major hurdle in the homebuying process, but luckily, there are down payment assistance options to help. With a down payment assistance program, first time homebuyers can get better mortgage terms and afford the house of their dreams.

Here is the most important info about these assistance programs for buyers to know:

How do down payment assistance programs work?

Down payment assistance programs are provided by a variety of institutions, including local government agencies and nonprofits. If you're eligible - decided based on household income, credit history and other factors depending on state - you can either receive a grant or special type of loan to pay for your down payment.

What are the different types of down payment assistance?

There are several types of assistance programs to help new buyers with a down payment:

  • Grants
  • Forgivable loans
  • Deferred-payment loans
  • Low-interest loans
  • Matched saving accounts

Grant programs offer monetary assistance without expectation of repayment. Other programs like forgivable loans or low-interest loans can serve as affordable second mortgages to cover the cost.

Who is eligible for assistance?

Eligibility requirements for down payment assistance programs depend on the individual program. Generally, you need a good credit score and a stable debt to income ratio. Some other requirements include:

  • The home must be in a specific location or county.
  • You must live in the home for a minimum amount of time (usually 3 to 10 years).
  • You have to be a first-time homebuyer.
  • You have to take a homebuyer education class.

How to apply for down payment assistance

The availability of down payment assistance is different in every area of the country. Check online or with a loan officer for eligibility requirements, applications and details.

Should you consider applying for a down payment grant or other assistance program? Remember these key points when factoring the option into your financial decisions. 

About the Author
Author

Donna Gilles

Phil Gilles

Direct: 239-425-5423 | Email: [email protected] 

Donna Gilles

Direct: 239-425-5426 | Email: [email protected] 

Donna and Phil Gilles are two of the most respected Pine Island Florida Real Estate Agents. Their dependability, honesty and integrity are truly a "cut above” in the real estate profession. 

Donna and Phil started BlueWater Realty of Pine Island on September 11, 2002, realizing Pine Island was in need of a real estate family that was a step above the mass marketers that dominate the real estate profession. Donna and Phil’s in depth real estate training include: investment management, brokerage, marketing high-end homes, real estate law, ethics and practice.

If your immediate future requires counseling in the purchase or sale of real estate, please contact Donna or Phil. They are professionals who will work hard for you to help achieve your real estate goals