Down Payment Programs 101: The 3 Most Common Homebuyer Programs Explained
How do you go from dreaming of owning a home to holding your first set of keys? If you’re like most first-time buyers, the down payment is your biggest hurdle — but it may not need to be.
There are more than 2,500 homebuyer programs available across the country. Let’s take a look at how the 3 most common types of programs work.
What are homeownership programs?
Programs can include loans, grants, tax credits and other programs for eligible homebuyers that can help them achieve the down payment faster, cover closing costs and get into a home sooner than they would have otherwise.
Who offers these programs?
Homebuyer programs are managed and funded from an array of sources, each with its own requirements, nuances and limitations. The role of program administrators can vary, but generally, they approve participating lenders who are trained on the program guidelines and approved to originate, process and close specific programs.
You can work with a participating lender to apply and access down payment help or you can directly contact the agency offering the program.
How do you qualify?
Both you and the home you are purchasing must be eligible. Homeownership programs are for owner-occupant buyers only — no investment properties. keep reading
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