Down payment assistance programs provide the grant funds to income-eligible households to cover the required down payment and closing cost for home buyers. Program subsidies are typically provided as a zero or low-interest grant funded for low and moderate income persons. Expanding home ownership opportunities for income-eligible households and to increase homeownership within.
While some states such as Florida and Texas or Nevada and California have similar guidelines, restrictions and eligibility vary across the country. Some City first time home buyer programs require the grant to be paid back in full either when the house is sold, transferred out of the buyer’s name, rented, or if the buyer seeks a second lien (such as a home equity loan).
Down payment assistance programs have been crucial to achieving record levels of homeownership, both among the general population and among groups which historically have been denied the ability to purchase their own homes. Program advantages serve the working yet struggling class to include lower income, minorities, women headed households and first time home buyers with the education and other resources needed to help them meet the responsibilities of homeownership.
Often buyers simply don't have the cash for a down payment and can't afford any out-of-pocket costs. Down payment assistance not only helps families to purchase homes, but also to provide those families, many of whom are first time home buyers, with the education and other resources needed to help them meet the responsibilities of homeownership. In turn, those responsible, committed homeowners help build safe, thriving communities.
Down payment assistance programs are targeted at low and moderate income purchasers purchasing modestly priced homes in neighborhoods which would particularly benefit from an increase in owner-occupied housing. Down payment assistance programs have been crucial to achieving record levels of homeownership, both among the general population and among groups which historically have been denied the ability to purchase their own homes.
Down payment assistance programs have been instrumental in lifting homeownership rates to record levels across the nation, particularly among minority groups. Because down payment assistance overcame one of the largest barriers to entering homeownership many hundreds of thousands of low and moderate income families from New York to Arizona and Georgia to Washington have purchased homes for the first time.