There are several goverment programs that are in place that give down payment assistance, The Good Neighbor Next Door is provided through the U.S. Department of Housing and Urban Development (HUD). This program encourages law enforcement officers, teachers, firefighters and emergency medical technicians (EMT) to live in the low - and moderate income neighborhoods where they work. HUD believes this effort will strengthen communities, reduce crime and promote homeownership opportunities.
Eligible buyers may purchase HUD-accuired homes located in certain revialization area with the following criteria:
- At a 50% discount from the list price *
- With a DownPayment of $100, if FHA financing is used. However, due to mortgage insurance requirements, FHA loans may cost more over the life of the loan that other low downpayment opportunities.
*HUD places a 50%, zero interest, forgivable second mortgage on the property.
The Guarnteed Rual Housing Program is by the U.S. Department of Agriculture (USDA) Rural Development. The program assists low-to-moderate income buyers in rural areas and features:
- Financing of up to 100% which allows more buyers to be eligible for the program.
- Closing costs and prepaids that can be financed if the total loan amount remains withing the appraised value.
- An annual fee paid to USDA's Rural Development that's collected as part of the monthly mortgage payment.
Most low to moderate income programs require that you complete a Homebuyer Education progam which may include the following
- Face to face counseling
- Facilitated workshop
- Self study materials in conjunction with telephone counseling
Other limitations apply, click here for more information.
There are opportunties to purchase a new home and help available for brand new buyers. Click here for more information