Down Payment Assistance

7 Generous Down Payment Assistance Programs

by Property Management Software on January 15, 2011

Home Down Payment Assistance

Home prices have dropped, and mortgage rates are low. For anyone with the tens of thousands of dollars now required for a down payment, it's a pretty good time to buy a house. Now, it's even getting easier without that hefty down payment, as governments step in to help out.

A growing number of state and local governments are now offering what are called "down payment assistance programs," grants or low- and no-interest loans to first-time buyers or those who haven't owned a house in a few years. The number of programs, now somewhere around 1,000 nationally, has increased 3% to 5% in the last six months alone, estimates Marc Savitt, president of the National Association of Independent Housing Professionals, an advocacy group.

There is no official database of all the programs in the country, but asking mortgage lenders and realtors, and checking state housing agency and local government web sites are good starting points. The top 7 down payment assistance programs are:

1.     California Housing Finance Agent's School Facility Fee Down Payment Assistance Program

2.     California State Teachers Retirement System - the 80/17 Program

3.     Florida's Housing Finance Corporation Down Payment Assistance Program

4.     New York's Department of Housing Preservation and Developments HomeFirst

5.     North Carolina Housing Finance Agency's Down Payment Assistance

6.     Mayor's Office of Housing of the City and County of San Francisco Down Payment Assistance Loan Program

7.     West Virginia Housing Development Fund's HomeOwner's Assistance Program

And, in a stark reversal, some banks are now far more willing to work with borrowers who need down payment assistance, buyers who were considered too risky 18 months ago.