When it comes to real estate, most lenders require buyers to provide down payments before they approve them for Property Loans. Coming up with the required 20 percent (or as low as 3.5 percent in some cases) can be challenging. However, there are a few places where buyers may be able to get help with their down payments. Here is a couple of options.
Check with the Department of Housing
The state and federal governments are invested in getting people to buy homes. This is because communities with homeowners tend to be more stable than those with only renters, and people who own their homes tend to be more invested in keeping their neighborhoods safe and livable. Therefore, some states have programs that give home buyers money towards the purchase of homes.
For instance, the Department of Housing in Michigan has a program for low-to-moderate income homebuyers that provides up to $7,500 towards the down payment. Buyers must complete a home buying education class and provide at least 1 percent of the sales price, among other qualifications.
Chances are pretty good that other states, and even the federal government, have similar programs. Doing a search online should uncover these other opportunities for assistance.
In addition to government agencies, there are a number of local and national nonprofit organizations that specialize in either providing homebuyers with funds for down payments or matching them to programs that help them get the money they need to buy a home. One popular organization is NeighborWorks America. However, there are many others that can be found using a simple online search.
Typically, the down payment assistance programs offered by these organizations have eligibility requirements. For instance, applicants may be required to earn a certain amount of money each year or be classified as low-income or disadvantaged in some way. Other programs may only loans that must be paid back and require a credit check to qualify.
Regardless, those looking to obtain Property Loans should take the time to look up programs that can help them come up with the money for down payments, as this can make the home buying process much easier. For more information about loans or down payment requirements, contact Pearl Hawaii Federal Credit Union.