Down Payment Assistance - How You Can Afford to Buy a Home

For most people, buying a home is the ultimatemarket, it helps builders and buyers. The grant is
dream come true. A home is someplace you can callavailable on a first-come first-serve basis with a total
your own and design to fit your family's needs.of about 1600 estimated available to take advantage
However, owning a home can seem out of reach forof the help. The grant is available to anyone buying a
those who save but never seem to have enough fornew home, not just first-time home buyers. You
a large down payment. Fortunately, there aremust use a 30-year fixed mortgage and meet
programs that can help you achieve your dream.income requirements of less than $75,000 per person
Government Tax Creditor $150,000 per couple.
The government is offering tax credits up to $8000FHA Loans
for first-time home buyers buying a home in 2009.These loans are perfect for first-time home buyers
Unlike the previous tax credit in 2008, the creditbecause the loans are insured by the government,
doesn't have to be repaid if you stay in the homewhich can offer a lower interest rate from a lender
more than three years.even if you don't have good credit. These loans only
Government Down Payment Assistancerequire a 3.5% down payment rather than the usual
Most states, counties, or cities offer some form of20%. To further help home buyers, the down
down payment assistance. Some of these programspayment can come from a family member, employer,
are grants, which don't require you to pay themor charitable organization as a gift. Since these loans
back. They usually have an income limit, home priceare designed to help those who may otherwise be
limit, credit history requirement, first-time home buyerunable to afford a home, FHA mortgage limits are
requirement and may require you to live in the homeset on the price of the home, which varies with each
for a certain period of time. However, most of theregion.
government assisted down payment plans arePrevious Down Payment Programs
offered as non-interest loans and would work as aPreviously, sellers could fund part of the down
second mortgage on your home that you wouldpayment for first-time home buyers through
have to repay when the home is sold or refinanced.intermediary charitable companies. In 2008 President
Many states or counties will offer a larger downBush passed H.R. 3221 into law which became
payment if you live in a less populated area in theeffective October 1, 2008, abolishing seller-funded
country. Look at your state's government website todown payment assistance programs (DPA) such as
find out if you qualify.Ameridream and Nehemiah. Currently these types of
If you live in Utah, a new bill passed in March 2009programs are not available to first-time homebuyers,
offers a grant up to $6000 for any buyer whohowever, these companies are working to get them
purchases a new construction house that has neverre-approved so you may want to look into them if
been lived in. With so many new homes sitting on theyou are buying in the future.