There are down payment assistance programs out there. In fact, many states recognize that it can be difficult in today’s economy to save for a down payment so to encourage their residents to move into home ownership they offer down payment assistance programs (DAP) ranging from educational courses to grant money dedicated to assisting qualified home buyers.
- Kentucky Housing Corporation Down Payment Assistance offers a loan for the down payment at a low- reasonable interest rate, repayable over a 10-year term.
- Kentucky Housing Corporation will have Hardest Hit Funds available for a brief period of time. These are used to help qualifying families cover their down payment costs for a home purchased in specific counties.
- Your Kentucky Home Program: Kentucky Association of Counties, Inc. offers qualifying applicants up to 5% down payment assistance.
- Tennessee Housing Development Agency offers financial assistance in the form of a second mortgage loan on your home. There is no interest on this second loan and only has to be repaid when selling, moving out of, or refinancing the home. There are some circumstances where the second loan can be forgiven, meaning it doesn’t need to be repaid at all.
- Ohio Housing Finance Agency offers Down Payment Assistance up to 5% of the home’s purchase price for first time home buyers. This amount can be applied to the down payment, closing costs, or other pre-closing expenses. This assistance is forgiven after seven years; if the home is sold or refinanced within seven years, the entire amount must be repaid.
- Communities First offers grant money to assist homebuyers with their down payment. There are income limits, meaning you cannot exceed a specified income.
- The Next Home program allows for down payment assistance up to 4%, has zero interest and is fully forgiven after two years.
Down payment assistance is certainly available but knowing how much is needed to cover the down payment of each loan is important to know! Click here to read more.