Before buying a house or taking out a loan, you might be worrying about whether you can afford a down payment, in the first place. Doesn’t matter if you are a first-time homebuyer, a down payment assistance program is available. The lenders understand how buying a home is not a cakewalk when financial matters are concerned. Even if you are going to choose a loan to support your dream, you have to put down a certain percentage of the loan value. As a first-time homebuyer or someone with a rocky financial condition, down payment is also not an easy thing to pull off. Now, approximately 82% of millennial citizens in the U.S. are focusing on one thing – buying a home. When they have a student loan chasing after them, down payment becomes a persistent issue. Keeping these issues in mind, a down payment assistance program has been making rounds.
While purchasing a home, you are expected to make a down payment. If you are sinking in a muddy situation, coming up with down payment is not the easiest thing. You can choose a home loan with 3% or 3.5%; however, calculate the down payment percentage against a $2000,000 home loan. Yes, the number is pretty huge! This is where a down payment assistance program enters. Let’s find out more about the down payment assistance to purchase homes in Texas.
Choose Forgivable Community Second Loan
The forgivable community second mortgages do not ask you to pay back if you stay in the house for a particular number of days. The loans have a zero interest rate, and the lenders forgive the amount after crossing a particular number of years. Many lenders forgive the loan after 15 or 5 years. However, you will have to pay back the amount if you leave the house before the specified period.
Go for Online Homebuyer Education
One of the requirements of applying for a forgivable community second loan is that you need to enroll in an online homebuyer education class. The first-time homebuyers can gather essential information on the purpose of down payment and other commonly used terms. After finishing the course, you can successfully take the right step and become a responsible homeowner from the beginning. You will get a clear idea of where to go and whom to ask for assistance.
Check if You are Eligible to Apply
The assistance program is designed for first-time homebuyers; however, they are not the only ones. If you have not bought a house in the past 3 years, you can join the program. In case you have recently divorced and used to own a home with your ex, you are also considered as a first-time homebuyer. There are other situations considered too. If your home had been severely damaged, you could apply for the forgivable loan. Usually, most of the down payment assistance programs are crafted for first-time buyers; however, this is not the case everywhere.
So, don’t let worries get in the way. Get the help of a professional lender whenever you need it!