Buying a Home Made Easier Through Down Payment Assistance

A couple discussing their finances with one another A lot of people are discouraged from buying a home because they don’t have enough savings to cover the down payment. If the only problem is the down payment, it is not enough reason to deter you from owning the home of your dreams.

Providers in Ogden such as Wasatch Peaks Credit Union may offer various programs on down payment assistance, as well as zero-interest second mortgages, and other mortgage programs that can help you if your biggest problem is not having enough money for your initial payment.

Misconceptions About Down Payments

What is the big fuss about down payments then? First, some people are of the mistaken belief that you must put up at least 20% of the home value before you can buy a home. The truth is, while having 20% can exempt you from paying PMI or private mortgage insurance, it is not necessary. In fact, for conventional loans, you can pay even just 5% for down, and for FHA loans, as little as 3.5%.

On the other hand, some people are aware that they don’t need to put up 20% outright to buy a home, but only 5%. However, they still think they don’t qualify since they don’t have even the 5%.

About Down Payment Assistance Programs

Most people would qualify under these assistance programs, and not just the low-income households. In most parts of the country, including Utah, you can be earning over the median income and still qualify for the assistance program. Even if you are a high-income earner, you may be eligible for a grant that covers 5% of the outright purchase price of your target home.

In Ogden, down payment assistance may be granted for $3,000, $5,000, or $10,000 – zero interest, and zero monthly payments.

Final Word

Now, just because you have access to down payment assistance grants, it doesn’t mean that you should indiscriminately buy a home that costs way beyond what you can afford. Look at the overall picture and determine the home cost you can afford.

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Posted on by Nihonmagazine in Money Talks

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