In a recent post, I mentioned that a number of loan programs are available with little or no down payment. While most of the programs offered by government agencies apply to low to moderate income applicants, there are major exceptions. Let me review the various options that need to be evaluated by homebuyers.
The loan programs with the broadest applicability nationwide are State Housing Finance (HFA) agencies, which offer any number of fixed and variable loan programs for first time homebuyers, disabled persons, veterans, teachers, police and firefighters and other groups. Some states also offer loan or other assistance programs for existing homeowners, as well. The programs vary from first or second mortgages to down payment assistance to grants, tax credits, rehab loans, urban redevelopment, etc. The point is that there are numerous mortgage and loan assistance offerings available at the State level that should be explored by many aspiring homebuyers. Much of the funding for these State programs is made available by the Federal government through block grants to State and local agencies, State and local government tax exempt bonds or through Federal Housing Tax Credit programs. There is no guarantee that funds will be available for any of these programs at all times. However, potential applicants should contact their State HFA first, to determine their potential eligibility and available funds. Information on these various State programs as well as contact information for their offices can be found in my book, Homes Buyers and Mortgages as well as my website, homesbuyersandmortgages.com.
Jason Kotar, Author
Homes Buyers and Mortgages
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