Seeking down payment assistance for first time home buyers in Quincy can prove to be difficult in today’s real estate market. In the past, there were several national programs available, but since a downturn in real estate markets and lending institutions, most of these programs have become stagnant or eliminated altogether. You can still find some help available, but now that help may come at a local level rather than at a national level.
National down payment assistance programs such as the Nehemiah Program and ACORN were extremely popular and helped many people purchase a home in Quincy. Some of the requirements for these programs were:
- buyer had to attend an education class on home ownership
- seller paid a percentage of the sale price of the home back into a pool of funds
- home had to close in a specified time frame
Although these particular programs are no longer available, there are local programs that are available with some of the same criteria. An example of a local program may be that the home buyer purchase a home in a specific location in a metropolitan area, with requirements that the home owner must live in the home as their primary residence for a certain number of years. The idea behind this is to revitalize neighborhoods by helping people become homeowners as opposed to renters, thereby having a vested interested in the upkeep of the home.
Teacher Next Door and Officer Next Door
The Federal Housing Authority (FHA) has an incredible down payment assistance product available for teachers and police officers called the Teacher Next Door and Officer Next Door program. Benefits include 50 percent discount off appraised value of the home and only a $100 down payment. Per FHA:
“Under the Teacher Next Door program, HUD offers homes located in designated revitalization areas. Revitalization areas are typically in low- and moderate-income neighborhoods, have many vacant properties and often have high crime rates, but are considered good candidates for economic development and improvement.
Homes offered for sale in the program were previously insured through the FHA and then foreclosed. HUD also reduces the down payment requirement to just $100 if the home is purchased with an FHA insured mortgage.”
The following are requirements that Teachers must meet to use the program:
Teacher must live in the property as their sole residence for at least three years after purchase.
A “teacher” is defined as an individual employed full time by a public school, private school, or Federal, State, county, or municipal educational agency as a State-certified classroom teacher or administrator in grades K through 12.
In order to purchase a Teacher Next Door Home you should be pre-approved and have a letter of commitment for an approved loan.
In addition to local programs and special down payment assistance for first time buyers, regular FHA loans with a moderate down payment required are still available, as well as the VA loan for veteran’s and active military personnel which requires no down payment at all.
Even though the large, national down payment assistance programs for first time buyers have been eradicated, there are still options available. Seek the advice of a real estate broker or attorney, or a buyer’s agent to learn what local programs are available and how to apply to them. If you are a teacher, police officer, firefighter, or emergency medical technician, seek advice on how to move forward with one of the fantastic programs offered your profession.
If you are thinking about purchasing a home in Quincy and you are wondering what type of assistance that you may qualify for, please give me a call on 781 929 3683.
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