Down Payment Help for First-Time Home Buyers

As a first-time home buyer, you may be looking for as much down payment help as you can get. The more money you have down, the better the chance you have of getting a mortgage. Along with this, a bigger down payment leads to a smaller monthly payment–and that is something that almost every buyer is interested in.

Down Payment Help from the Government

No matter where you live, there is a good chance that you will find a down payment assistance program offered by your state. This is something that you should definitely consider, even if you do not think that you need down payment help. The more money you can get from the government, the better off you will be.

Check with your state to see if it has a first-time home buyer program. Eligible home buyers may qualify for down payment assistance of up to $15k, as of 2010. Some programs offer grants that you do not have to pay back. Others offer down payment help in the way of a loan or second mortgage that you will be responsible for paying back once your primary mortgage is taken care of.

Most down payment assistance programs require that you take out an FHA loan.

Borrow Money from Friends or Family

If you want to increase the amount of your down payment, you may want to borrow money from those who are close to you. This may sound like a bad idea, but in many cases, it is the only thing you can do if you are interested in buying a home.

The main benefit of borrowing from friends and family is that you can often get the loan at a much lower rate. In other words, they will not charge you a high interest rate, if any at all. Along with this, you may be able to work out more flexible repayment terms.

Zero Down Programs

There are also loans that do not require you to make any down payment. In other words, you can get 100 percent financing. Although this means a higher monthly payment, it will go a long way in helping you get into the home of your dreams. In order to qualify for these programs, you will need to meet certain requirements such as a particular income level.  

The United States Department of Housing and Urban Development (HUD) offers a lot of information on down payment help, as well as the many different types of loans that you may qualify for. Grants for first-time buyers can be applied for through this department of the federal government.

There are many ways that first-time home buyers can receive down payment help. In addition to grants, loans from the government and personal contacts must be considered. With all these options, obtaining a large enough down payment is easier than ever.

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