Although becoming a homeowner is a very exciting undertaking, many potential homebuyers are concerned that they may not be able to afford the down payment on a home. Luckily, there are many government programs available intended to help qualified borrowers who are interested in purchasing a home. If you are interested in buying a home in Mount Pleasant, South Carolina, and want to better understand your financing options, the specialists at Lucey Mortgage Corporation can help. Read on to learn more about the down payment assistance programs that may be available to help you finance your new home.
What Are Down Payment Assistance Programs?
Down payment assistance programs were created to help make home ownership more affordable for a borrower, and they can be provided by government city and county programs, and also from state housing financing agencies. Although most down payment assistance programs are designated for first time homebuyers and offered with certain types of mortgages, you may also qualify for many of the programs if you have not owned a home within the past three years. Additionally, there are some down payment assistance programs that are designed for people working in specific career fields, such as law enforcement, educators, city employees, etc.
What Types of Down Payment Assistance Programs Are Available?
- Zero interest forgivable loans – These are loans that can be forgiven after a certain amount of time and the loan doesn’t need to be paid back if the owner continues to live in the home after the loan period is over.
- Zero interest loans with a deferred payment – These are loans that do not require a down payment or closing costs until the property is either sold or refinanced, or in the event that the mortgage has reached the end of its term.
- Low interest loans – These loans must be paid back after a fixed period of time and they make home ownership possible for borrowers by extending the cost of the down payment and closing costs.
- Grants – Certain types of programs are available for qualified borrowers offering funds for down payments that are not required to be paid back.
Down Payment Assistance Program Requirements
Some typical eligibility requirements for down payment assistance programs include:
- You must meet certain income limits
- You must purchase a home in an approved location
- The home must be below a certain price, depending on the area
- Completion of a guidance course for homebuyers will be required
If you are interested in learning more about the types of down payment assistance programs that are available to you in Mount Pleasant, South Carolina, contact Lucey Mortgage Corporation today for a consultation.