Down Payment Assistance Programs

One of the most common concerns that we hear from homebuyers is how difficult it is to save up for a down payment. We don’t disagree with that! However, there are many options nowadays to help new buyers get into a home they love without breaking the bank.

Saving for a Down Payment

Most new homebuyers typically think they need to have a big down payment saved up before even considering purchasing a home.

Guild Mortgage strongly believes in affordable homeownership and helping buyers through down payment assistance lending programs. Guild works with counties all across the nation, offering a large variety of down payment assistance (DPA) programs that can help people become homeowners sooner rather than later.

How Does Down Payment Assistance Work?

DPA programs offer assistance in the form of either a loan with little to no-interest that can often be forgiven over time, or a grant which is secured as a lien against the property.

While this can certainly vary by the property location, eligibility for down payment assistance programs is typically based on income. If you fall into one of these categories as a buyer, you will likely qualify for one of our assistance programs:

First-time homebuyers
Buyers with income that is below area median levels
Buyers with little to no money saved for a down payment

Keep in mind that you still have to be able to get pre-approved for a mortgage in order to take advantage of a DPA program. This means that you will need steady and reliable income, a reasonable debt-to-income ratio, and a decent credit score and history.

Benefits of Down Payment Assistance:

Down payment assistance programs are easier to qualify for than many people think, and they’re a viable option to homeownership for those buyers who are almost there but haven’t been able to save up for that down payment.

Some other benefits to consider:

Increase your buying power by being able to afford more
Potentially avoid mortgage insurance requirements if you don’t have a full 20% to put down
Certain loans or grants are sometimes forgiven so you don’t have to pay them back

If this sounds like the position you’re finding yourself in, we would love to chat and let you know if a DPA Program might be a good fit for you. Don’t hesitate to contact us today!