If you are considering purchasing a home, one of the first things you will need to consider is a down payment. The more money you have available for the down payment, the lower your mortgage payments will be. Each loan type has different requirements so you will have to discuss with a mortgage lender the amount needed for a down payment which is typically a percentage of the value of the home.
If you are not able to come up with a sizable down payment, there are still options available to you to purchase a home. There are many different homebuyer programs, and they can suit many different situations and backgrounds.
Types of Assistance
One way to get help with your down payment that some may not consider is to seek help from family. Not everyone has family that can assist with a down payment but if you do have family that can help with a down payment, it could be a great option to get started towards buying a home.
Down payment programs are specifically for second or third mortgages with zero percent interest and deferred payments. These programs can not only be applied towards the down payment of the home as well as closing costs and repairs. These benefits can fluctuate depending on the area’s average home prices so you don’t have to limit your search to homes that are on the lower end of the market when it comes to purchasing price.
If you have been instructed to focus your search on a specific area by a housing finance agency, you could be granted an even higher amount of assistance or less strict parameters in regard to your search. As a first time home buyer, you will also be given some special assistance in most cases.
You can often get help from larger housing agencies to help with first mortgages along with down payment programs. These are usually offered at a below market interest rate with lower closing costs and fees, with limited requirements.
These are often funded by state housing agencies and will be determined by the local market to offer affordable rates lower than what is typically on the market, which helps keep monthly payments low.
Tax Credits Can Help Too
If you are a first-time homebuyer, you can offset a portion of the mortgage interest with the annual federal income tax credit. Since this is a credit and not a deduction, this can help reduce your overall taxes but does vary state to state, so it is important to discuss the details based on your specific housing area.
Contact Us Today
We know that purchasing a home, especially as a first-time homebuyer, can be a nerve racking process but we want to be there to help you figure out the first step as well as make it affordable. Please reach out to North Star Mortgage Network today!