Local lenders can give you options on the best down payment program.
Are you a first-time homebuyer struggling to save for a down payment? The news of lower interest rates and a rise in inventory has reached many people, driving buyers to look at properties and return to the market. This window of opportunity also gave hope to first-time homebuyers to finally become homeowners.
One thing that can help homebuyers when they plan to buy a house is down payment assistance.
Now, you know that I love statistics, and I was surprised by a recent post from Realtor.com that says that 80% of first-time homebuyers qualify for down payment assistance, but only 13% take advantage of these programs. I thought it was probably because some of these programs are hard to find, and people are not aware of their options.
In our area, many lenders from local banks offer assistance for down payments. Sometimes, they base your qualifications on income. Some options only require you to make a 3% down, and veterans may even qualify for a 0% down. So, don’t overlook veteran qualifications for home mortgages.
“A good grant or loan for your down payment can lower your monthly payments”
One program you should look into is the Ithaca Neighborhood Housing Program, which offers up to $20,000 in down payment and non-forgiving assistance. Although it starts with “Ithaca,” it extends beyond Tompkins County into Chemung County. Of course, there are qualifying rules, but local banks know a lot about these options.
There are also organizations like Catholic Charities and many programs in most of our counties. All of them are just one Google search away.
Here’s what I suggest: find a local lender and know your options before starting the home-buying process. Securing a good grant or loan for your down payment can lower your monthly payments and might even help you eliminate Private Mortgage Insurance (PMI)—a fee you need to pay when you don’t have 80% equity in your home.
For those of you who have bought homes, you may have great equity in your property. You can use that to help you pay for a new home because you can put more money down.
There are a lot of options out there. Contact me at (607) 795-2904 or vickischamel@kw.com, and I’ll connect you with banks actively using some of these grants. They can be surprisingly useful, especially if you’re a first-time homebuyer.
Fall is here, and if you enter the market now, you can move into your new home before the year ends, giving you a fresh beginning.
