Question:

How to get government down payment assistance?

Answer:

There is a lot of government down payment assistance available if you really make the search for it. Actually, there are many local government entities around that would like to see a renter become a homeowner. The requirement is usually that the household's income is below the median of the area and money is usually provided in the form of a forgivable home loan.

Forgivable Home Loan With Government Down Payment Assistance

The eligible candidate is expected to live on the property for certain period of time. If they move out, a pro-rated part of the loan has to be repaid. Also, restrictions may apply to refinancing the forgivable loan, or cashing equity on the property acquired with a forgivable loan.

Non-profit charities and government entities provide government down payment assistance to eligible homebuyers, as well as some banks and lenders provide down payment assistance following federal directives on increasing mortgage affordability. Some lenders will offer interest-free home loans that have to be repaid.

Government and private down payment assistance recipients are expected to complete a course on home buying and ownership.

To get help with down payment and closing costs, you could use government down payment assistance and search for down payment assistance (DPA) programs in your county.

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