If you’re a homebuyer in Lakewood or Long Beach, you could qualify for down payment assistance.
There are several types of down payment assistance programs available, including:
· Disabled buyers and homeowners
· Energy efficiency mortgage programs
· First-time buyer assistance
· Grants and loans
· Home improvement programs
· Job-specific programs
· Mortgage credits
· Repeat buyer assistance
· Veterans programs
Types of Down Payment Assistance and Ways to Save on Your Down Payment
Check out each of these types of down payment assistance to find out if you might be able to apply for help.
Disabled Buyers and Homeowners
There are several types of assistance for disabled homeowners. Some of the most notable programs include:
· HUD’s Homeownership Voucher Program
· Fannie Mae’s Community HomeChoice Program
Energy Efficiency Mortgage Programs
The Energy Efficient Mortgage Program from the Federal Housing Administration, or FHA, and the Veterans Administration, or VA, both let homeowners finance improvements that promote energy efficiency. The improvement cost gets rolled into your home loan rather than coming out of your pocket.
First-Time Buyer Assistance
Loans backed by the U.S. Department of Agriculture and the FHA often offer low down payment requirements. You can also use them for reduced interest rates.
Grants and Loans
A lot of down payment assistance comes through grants and loans supplied by state and local governments. (They get money from HUD or other government agencies, in a lot of cases.) You don’t have to pay back grant money, but you do eventually have to pay back loans.
Home Improvement Programs
The Energy Efficient Mortgage Program mentioned above is part of these types of programs. Sometimes lenders will roll the cost of repairs and upgrades into your mortgage.
Some employers offer down payment assistance programs. If you’re a veteran or active-duty service member (or a qualifying family member), you could be eligible for a VA loan that doesn’t require any down payment at all. The Good Neighbor Next Door program is designed for firefighters, law enforcement professionals, EMTs and teachers in “revitalization areas,” and the Teacher Next Door program is specifically for educators.
Mortgage credits come from the IRS to reduce your federal tax burden – but it doesn’t provide cash right now. Instead, it provides you with savings to subsidize your monthly payments.
Repeat Buyer Assistance
Repeat buyer programs come from organizations like the VA and HUD. And here’s another bonus: If you haven’t purchased a home in a while, you could still count as a first-time buyer. However, every organization (and its requirements) are different.
The VA backs loans for qualifying service members, veterans and a handful of dependents. You don’t need a down payment at all with a VA loan.
Related: VA Loan Benefits
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