Down Payment Assistance For First Time Home Buyers

Buying your first home is exciting, but can also feel overwhelming. As a buyer, you have many loan programs available to you. That’s why partnering with an experienced mortgage loan advisor is such an important part of buying your first home. A loan advisor can provide insights on the loan programs that can help you along the way, such as first-time buyer programs.

First-time home buyer programs are designed to help new home buyers achieve their goals of home ownership. (Not your first home? Ask your Bryte home loan advisor if you qualify for a first-time home buyers program even if you have purchased a home before.)

Here’s how a first-time home buyer program can help remove one of the biggest obstacles to purchasing a home: the down payment.

A larger down payment is generally recommended for buyers who want to avoid paying mortgage insurance, but saving those funds can take time. For many buyers, the money needed for a down payment can be one of the biggest hurdles to buying their first home. Fortunately, there are loan programs that contain down payment assistance programs designed to help first-time home buyers who have little, or even no cash saved for a down payment.

If you have been worrying about where to find the funds to purchase your first home, take a look at a few first-time home buyer down-payment assistance programs available to help you get the home you’ve been dreaming of.

FHA Loans

FHA loans are insured by the Federal Housing Administration, and these government backed loans have been designed specifically to help home buyers achieve their goal of home ownership. FHA loans have lower down payment requirements compared to conventional (private lender) mortgages. With an FHA loan, your down payment can be as low as 3.5%*, and can be gifted to you from a family member or friend. FHA loan guidelines are also more lenient and allow for lower credit scores and lower debt-to-income ratios, and will allow seller contributions towards your closing costs.

USDA Loans

The only government-backed loan program that offers 100% financing for all qualifying borrowers, a USDA loan is a great option for first-time home buyers looking for a zero-down payment option. USDA loans do have some very specific eligibility requirements, including the location of the property. USDA 100% financing loans are intended for home buyers who want to purchase rural property outside of major metro areas. If your idea of home is a quiet countryside property rather than a bustling city condo, a USDA loan with 100% financing, may help to get you there.

VA Loans

The U.S. Department of Veterans Affairs insures VA loans, and helps veterans, active military persons, and surviving spouses obtain their dream homes. VA loans are available with up to 100% financing. VA loans have no mortgage insurance requirements, and more flexible eligibility guidelines. If you are one of the brave men or women who serves or has served our country, a VA loan is the program to help you buy your first home.

Local Down-Payment Assistance Programs

Depending on where you want to purchase your home, state or local down-payment assistance programs may be available to you. Many of these programs are in the form of an interest-free “silent” second mortgage that doesn’t need to be repaid until the house is sold, refinanced, or paid in full. Your Bryte home loan advisor can help you uncover the local down-payment assistance programs in your area.

Many first-time home buyers think they need to have 20% saved up for a down payment, plus funds to cover closing costs. But if not having these funds is the only thing standing between you and buying your first home, don’t worry. Gift funds, down-payment assistance, and specialty programs tailored specifically for first-time home buyers can help you move forward to get the home of your dreams today. From help with closing costs to 100% financing, your Bryte loan advisor can help you understand the many programs available to help achieve your goal of home ownership.

Bryte home loan officers are here to answer any of your home lending questions. Please call 253.649.4041 or contact us through our website here.

Please visit our Disclosures page for more details for all loan types.