If you’ve finally decided which house you’re going to buy, you will then proceed to make a down payment. Usually, down payments have a minimum of 20% of the property value. However, if you find this a little bit too much for your budget, all hope is not lost. You can still secure that down payment and the property you want. There’s a thing called a down payment assistance program and your real estate agent can assist you on how to avail of it. Here are four things that you should know about this program.
For assistance with the program, ask your real estate agent about the fine details
Basically, a down payment assistance program is designed to aid homebuyers with the closing costs when buying a home. You could call it a loan program that is specific for down payments. Either your state housing authority, a non-profit organization, or preferred lender may offer this program. However, the requirements for each applicant may be different. Due to the fact that this program is built on the principles of loaning money, the lenders may require loose to stringent requirements.
Who are qualified for this program?
Unfortunately, not everyone can be qualified for this program. There are certain criteria that need to be met. If the applicant does not meet the bare minimum requirements, he or she is disqualified from the program. Your local real estate agent in Myrtle Beach knows a lot about this and could refer you to a lender in particular. Most of these programs generally target first-time home buyers. If ever you’ve been able to buy a home before, you might not be qualified for this program.
How much assistance can you get?
The amount of assistance that each applicant could get would depend on state funding. If you were to apply for this program, the lender would then impose assistance as much as 20% of the total house price. However, some states have it differently. In New York, for instance, there is a cap for the down payment assistance program at $15,000. It’s a considerable amount of money but may not suffice if you’re looking at a house with a higher price tag. You may refer to your buyers agent for more info. Again, the requirements and the assistance that you may get will be determined by certain factors. Not all programs are the same.
When you’re looking for a house, always hire real estate agents to help you out. Doing your own research may give you some edge, but you can only get so far. Hiring a professional realtor like Full Potential Real Estate, LLC can give you a boost and the house of your dreams. Hiring a real estate agent has its perks. Most of the time, these people can get insider information and access to organizations that you might not be able to get a hold of. That’s one of the reasons why you should get a realtor when you’re in the market for a new home.
Looking to buy or sell your property? Call Full Potential Real Estate, LLC today!
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577