Downpayment Assistance Loans
Downpayment Assistance Loans are designed to help first-time homebuyers and those with limited funds to cover the initial costs of buying a home. These loans work alongside your primary mortgage to cover down payment and sometimes closing costs, making homeownership more accessible.
Benefits
- Minimal or no down payment required from your pocket.
- May offer grant funds that don’t need to be repaid.
- Can be combined with various primary mortgage types.
- Lower overall upfront costs to purchase a home.
- Opens up homeownership to a wider audience.
Eligibility/Requirements
- First-time homebuyer status in many cases.
- Income limits may apply based on your location and household size.
- Completion of a homebuyer education course
- Property must be in an eligible location.
- Must meet lender-specific credit score and DTI requirements.
Here’s an example
Emma, a nurse, dreams of owning her first home but struggles with saving for a down payment. She discovers a Downpayment Assistance Program through Hometown Mortgage, which covers her down payment. Paired with an FHA loan, Emma purchases her home with significantly lower upfront costs, making her dream a reality