Buying a home is one of the biggest dreams of many Americans; however, their financial situation prevents them from achieving that dream. As we all know, the process of buying a property is not just stressful, but costly as well. In fact, saving enough cash just to afford the 20 percent down payment is already a struggle for many.
Fortunately, there are now charitable organizations and federal programs that assist first-time homebuyers achieve their goal. If you want to buy a home but don’t have enough cash to complete the required down payment, then you should check out these options:
Down Payment Assistance Program (DAP)
The U.S. Department of Housing and Urban Development (HUD) helps in-need homebuyers obtain financial assistance through their Down Payment Assistance Program (DAP). This program is a network of HUD-approved lenders and organizations, who offers home loans for those who are unable to raise sufficient funds to complete a property’s upfront cost. However, you need to prove your ability to repay the loan in order to be qualified for the program. The amount of loan may vary from agency to agency.
American Dream Down Payment Assistance Act
This is a federal program signed by former President George W. Bush on December 16, 2003, which aims to increase the homeownership rate in the U.S. and provides up to $10,000 worth of down payment assistance to each eligible applicant. Anyone who will qualify to receive the grant can use the money to satisfy their down payment, closing costs, and any other fees associated with buying a home. The amount that will be given to the qualifying homebuyers is considered a grant or a gift, and it shouldn’t be repaid.
State Housing Assistance
Most states also have different housing programs that aim to help first-time homebuyers get the home that they’re dreaming for. These programs almost work similarly to HUD’s DAP. The amount of assistance as well as the application requirements may vary from state to state, so check your state’s housing authority to get more information, understand better how these programs work, and determine which of the options are available for you.
Military Homeowner Assistance Programs
Whether you’re currently working as a member of the Armed Forces or you’re already a retired veteran, you can take advantage of the various housing programs provided by the government to help you finance your dream home. There are a lot of available options out there. Visit government and military websites for more information and details for application.
Buying a home can really be stressful; but don’t let the cost of houses and complex process of buying scare you from getting your dream home. There are so many people out there who are willing to help. Take advantage of it, and give yourself and your family the home that you deserve.
If you live in Australia and want to get more information on how to buy a property, talk with your financial adviser or find a mortgage broker Melbourne.