(RepublicanDaily.org) – When it comes to buying a home, many people will likely struggle. Especially since buying a house is one of the most expensive purchases a person will make. One of the biggest problems facing home buyers is affording the down payment. However, a common misconception is that people should put together a 20% down payment! About a third of Americans believe a 20% down payment is needed to buy a home. Fortunately, that’s not the case! Payment assistance options are available to help people afford their down payments and secure their mortgage loans.
Of course, a necessary part of buying a home is getting a mortgage. The down payment is a percentage of the total amount the home buyer pays for the purchase of the house. This money will go toward the full purchase of the home, with the remaining becoming the mortgage. Fortunately, many support options are available to people struggling to get their down payment together! Some of the options available are:
- Federal Loans
- Chenoa Fund
- Down Payment Assistance Grants
Federal Loans
Many people don’t know different financing companies help people buy a home. Even the government offers down payment assistance grants, which are available with many benefits. Some government funding options include:
- FHA Loans
- VA Loans
- USDA Loans
FHA Loans
This loan is guaranteed by the Federal Housing Administration (FHA). This is a division of the US Department of Housing and Urban Development (HUD). These loans have the opportunity to buy a house with a rate of 3.5% if the credit score is 580. However, homeowners with a credit score of 500 to 579 can purchase a home with a 10% down payment.
VA Loans
The VA offers another government loan to buy a home. This loan is guaranteed by the US Department of Veterans Affairs (VA). Eligible service members or their eligible family members can qualify for this loan. One of the most significant benefits of this loan is that home buyers have the opportunity to buy a home with no down payment!
USDA Loans
Finally, on this list are USDA loans. These loans are provided through the Department of Agriculture’s (USDA) Rural Home Loan Guarantee Program. Only available to eligible rural home buyers, but home buyers eligible for a loan can buy a home with no down payment.
Chenoa Fund
The Chenoa Fund is a national mortgage assistance program available in all states except New York. It is offered by the CBC Mortgage Agency (CBCMA) and can provide up to 3.5% of payment assistance to borrowers. This is especially useful when you have a 3.5% down payment (for example, when you get an FHA loan!).
Down Payment Assistance Grants
Grants are a form of assistance that does not have to be repaid. It’s basically a form of free money! There are payment assistance services available to help homeowners manage their payments. Of course, to qualify for these grants, you have to prove your income. You can expect to see these grants provided by non-profit organizations, local housing agencies, or landlords!
Bottom Line
When it comes to paying for a home, it can be easier than you think. That is because there are many different payment solutions available. Some of the options available are:
- Federal Loans
- Chenoa Fund
- Down Payment Assistance Grants
Again – this is the biggest one – it’s a common misconception that home buyers need a 20% down payment. In fact, it’s possible to buy a home with little to no down payment, depending on your credit! Take your time and visit a professional to get more information and answer your questions.
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