Down Payment Assistance: A Guide Of Where To Look For Help As A First-Time Home Buyer

Buying a new home can be one of the most exciting endeavors you can make as an adult, but between paying for things like inspections by a professional and closing costs, it can be difficult to come up with a substantial amount of money to go toward a down payment. If you are in the process of buying your first home, you should know that it may be possible for you to get help with the down payment, from a place like Financial Guidance Center, that your financial institution requires before you can take out a new mortgage.

Localized Home Ownership Programs

Most locations have state or city-funded home ownership programs in operation to assist first-time home buyers with not only a down payment, but other financial aspects of buying a first home as well. Because these programs are designed to give local economy a boost, they are typically highly localized, meaning you will most likely have to find a program that is available through your exact location to obtain assistance. However, there are also state-operated programs in some places. Check with your local housing authority or center for urban development for more information about these home ownership programs that may be available.

Down Payment Assistance Grants

If you can luck out and find a grant available in your state, you could get a set amount of money to be used to help you pay for your down payment that you will not have to pay back in the future. For example, in the state of Colorado, the Colorado Housing and Finance Authority offers a grant for low-income prospective home buyers that is equal to as much as three percent of the home's value for those who qualify. This funding can be used to help pay the down payment or for other expenses, such as for closing costs or home inspections.

Lender-Based Down Payment Assistance

Depending on who you go to in order to obtain a first-home loan, whether it is a bank or finance company, there may be programs available to you through the lender to help you pay for the down payment. Make sure you let the lender know during the application process that you are a first-time buyer interested in down payment assistance. You may be given access to special, lender-based assistance programs that will help you either cover the costs of the down payment that is required or be required to pay a far lesser amount.