If you want to purchase a house for the first time but don’t have enough money for a down payment, getting a state or local down payment assistance program might be the best option.
We’re going to look at what down payment assistance programs are all about and how you could qualify for one.
Down payment assistance is any funding option or program that makes it easier for homebuyers to get the money they need for a down payment. Both public and government agencies offer these programs, usually as grants. They typically work by either providing the buyer the funds to cover the down payment or waiving the down payment requirements.
Most of the time, you need to meet some specific income requirements to qualify for the down payment assistance. You’ll also be required to live on the property for a certain time.
There are several types of down payment assistance programs: grants, forgivable loans, and deferred-payment loans, to name a few. If you’re interested in one of the programs, get in touch with our loan officer to ask how they work and if you’re qualified for them. Here’s a short rundown of some of the programs and how they work:
Grants: Down payment assistance grants are funds usually provided by a state-run agency or the state itself. Grants can also come from nonprofits.
Grants are meant for homebuyers with a low income, and they don’t have to be repaid. Grants are the most common down payment assistance program.
Forgivable Loans: As long as you stay in the house for a certain period — usually 5 to 10 years — the loan is forgiven, and you won’t have to repay the loan.
However, if you move before the forgiveness period ends, you’ll have to repay the loans.
Deferred payment loans: These loans usually come with a 0% interest rate and often don’t need to be repaid until you sell, move, refinance your primary mortgage, or pay down your first loan.
Most charity and government programs have strict criteria for who qualifies as a first-time homebuyer. If you haven’t owned a property in the past three years, most federal, state, and nonprofit programs will consider you a first-time home buyer.
You also can’t have any kind of rental or investment property ownership and get a first-time buyer down payment assistance, even if you didn’t use or live in the property.
If you plan on using down payment assistance to purchase a house, get in touch with our mortgage professionals. They would gladly assist you in finding a program in your area and give some helpful advice on qualifying and applying.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 1892543
P O Box 292901
Nashville, TN 37229
Phone: (615) 782-1410
Onyx Mortgage Group strives to ensure that its services are accessible to people with disabilities. Onyx Mortgage Group has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Onyx Mortgage Group makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows OMGofNashville.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Onyx Mortgage Group accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Onyx Mortgage Group continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Onyx Mortgage Group website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Onyx Mortgage Group website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: email@example.com