DON’T HAVE MUCH SAVED? DOWN PAYMENT ASSISTANCE PROGRAMS CAN HELP
Saving up that down payment is often the hardest part of buying a home. Fortunately, thanks to the wide range of down payment assistance programs available, a lack of savings doesn’t have to keep you from your homebuying dreams.
Do you need help covering your Louisiana dream home’s down payment? Get in touch with Essential Mortgage today or read on to learn more about these valuable programs.
WHAT ARE DOWN PAYMENT ASSISTANCE PROGRAMS?
Down payment assistance programs aim to increase homebuying affordability for low- and middle-income earning Americans. They typically work in one of two ways: either as a grant (which does not need to be repaid) or a second lien (which needs to be repaid when you sell or refinance the home.) In some cases, these programs may be “forgivable second mortgages,” which don’t need to be repaid as long as you live in the home for a certain number of years.
WHO’S ELIGIBLE FOR DOWN PAYMENT ASSISTANCE?
The exact eligibility requirements depend on the specific down payment assistance program you’re applying for. Generally, though, you’ll need to fall under certain income limitations, and there may be requirements regarding household size and location that you’ll need to meet.
FOR PUBLIC SERVANTS
If you’re a public servant, the Good Neighbor Next Door program may be able to help. These programs offer 50 percent off eligible HUD properties. Some state versions of the program (Texas Homes for Heroes for example) also provide assistance with down payment and closing costs, too.
If you’re employed full-time in any of the below public-serving positions, you likely qualify for these programs:
- EMS employee
- Firefighter
- Police officer
- K-12 teacher or teacher’s aide
- School librarian, nurse or counselor
- Public security officer
- County jailer
- Juvenile corrections officer
- Allied health or nursing faculty member
To learn more about Good Neighbor Next Door programs in your area, head to HUD.gov or contact Essential Mortgage for more personalized help.
FIRST-TIME HOMEBUYER PROGRAMS (AND BEYOND)
A number of affordable mortgage programs are available for first-time homebuyers, many of which provide down payment assistance as well. These typically offer low, fixed interest rates and assistance on closing costs and down payments up to 5 percent of the loan balance. These come in both grant and lien forms, depending on your income and eligibility. In some cases, these may be available for experienced homebuyers, too, so reach out to Essential Mortgage today to see what assistance you could be eligible for.
ANOTHER OPTION: MORTGAGE CREDIT CERTIFICATES
Mortgage Credit Certificates, also called MCCs, are another way to save on your home purchase both now and across your entire time on the property. These valuable certificates give you a tax credit equal to 25 percent of your mortgage interest paid across the year (up to $2,000). You can still write off the other 80 percent, too, saving you thousands of dollars every year you own the home.
A mortgage credit certificate could be an option for you if:
- You’re a first-time buyer, a veteran or have not owned a primary residence in the last three years
- You fall under certain income limitations
- Your property falls under certain price limitations
- You plan to use the home as your primary residence
MCCs are dollar-for-dollar tax credits and can offer your household huge savings during tax filing season. Want to learn more or see if you’re eligible? Contact Essential Mortgage now.
MORE HELP WITH DOWN PAYMENTS AND CLOSING COSTS
Down payment and closing cost assistance programs vary state by state, so get in touch with the Essential Mortgage team today to learn more about options in your area. We’ll help you get the assistance you need to buy a home.