While more affordable sale prices and lower mortgage rates have made it easier for many people to buy a home, there are still quite a few home buyers who have difficulty saving for the down payment needed to secure financing. For many first-time buyers, the ability to save sufficient funds to be used as down payment is the main obstacle to buying a home. However, many are not aware of the many great assistance programs now available options to help almost anyone obtain the necessary amount needed for a down payment.

Here are a few great ways that can help you get the cash you need in order to purchase a property:

State programs

Down payment assistance is available throughout the states. Although offerings are different for every state, these agencies can assist first-time buyers through grants, subsidized home loans, and other programs. In some San Diego county, buyers can get federally-insured home loans that come with grants to cover both down payment and closing costs. In order to qualify, buyers looking for assistance must meet requirements on income, credit, and home sales price.

Federal Housing Administration

Home-buyers can get low down payment home loan programs through the Federal Housing Authority, or FHA. The FHA offers mortgages with as little as 3.5% down for qualified borrowers. These loans are subject to certain requirements, such as 550 credit score and have a mortgage limit which varies from year to year. A large percent of home purchase loans today are backed by the FHA.

Veterans Affairs

If you are a military veteran, an active-duty serviceman, a reserve, or a member of the National Guard, you may be able to qualify for a 0% down payment mortgage offered by the Department of Veterans Affairs, or VA. VA loans are made by private lenders throughout the country, but are supported by the agency. Although borrowers with VA loans are required to pay a funding fee, they have the option to have this included into the loan. The VA loan is an excellent option as many members of the military constantly move from place to place, making it difficult for them to improve their credit scores or save money for down payment. In order to qualify for a VA loan, you must meet income and credit standards set by the agency.

Savings versus Assistance

Having the minimum for a loan for a small home means saving at least $20,000, this could take years. By then who knows how high prices will have gone. Assistance programs have become much more generous and with interest rates looking to rise over the coming years, it is very much in your interest to get started as soon as possible if you want to avoid having to settle for a smaller home.

For a discussion specific to your needs, please contact me at [email protected] or at 760 622 5087. You can schedule a phone appointment here: