Down payment assistance is more accessible than some might assume, but is it worth using? Let’s discuss.
People ask us from time to time if we offer any down payment assistance programs. To give you a short answer: Yes, every state offers some form of down payment assistance for qualifying homebuyers. Also, while there are first-time homebuyer programs available, you don’t have to be a first-time homebuyer to receive down payment assistance, in general.
To qualify for the majority of these programs, you will need a credit score of at least 620. Your specific credit score will also impact the size of the grant you’re eligible for. The downside to these programs is that they tend to carry quite a steep interest rate.
So, if you’re able to purchase a home without down payment assistance, it’s generally advisable for you to do so. You can still use gifted money from a family member toward a traditional loan, if necessary.
The most important thing is that you’re comfortable with the interest rate you lock in at closing. You may get the opportunity to refinance at a lower rate in the future, but this isn’t guaranteed.
Of course, everyone’s circumstances are different. If you or anyone you know would like to discuss your options, please give us a call or send us an email. We look forward to hearing from you soon.