What Is a Down Payment Assistance Program
A down payment is money paid upfront for mortgages, usually at closing, to complete a financial purchase paid for on credit. The amount a buyer needs to put down depends on the loan amount.
There are many types of down payment assistance programs available to both first-time home buyers and seasoned homeowners to help fund their home purchase. Grants, like the Hall Financial BUYSMART program, and forgivable mortgage loans are available to buyers. With the Hall Financial BUYSMART program, buyers can receive up to $2,500 in down payment assistance with no repayment and a swift closing period of only ten business days.
Forgivable mortgage loans, on the other hand, are second mortgages that have 0% interest rates. These loans do not need to be repaid as long as the homeowner stays within the home for a certain number of years. If the homeowners move before the forgiveness period is over, the loan will need to be repaid.
Different down payment assistance programs have different requirements; however, general requirements often include:
- A minimum credit score of 620 or higher
- Income that meets the program’s requirements
- The home must be in a specific location or county
- Be a first-time home buyer for certain programs
- Attend a home buying education and finance class
Contact your mortgage lender to find out if you are eligible.
For more information, chat with us at callhallfirst.com or give us a call at 866-Call-Hall.