Down Payment Assistance
Down Payment Assistance
First time home buyer down payment assistance.
Down Payment Assistance to Make Homeownership More Affordable
PacRes Mortgage understands that saving for a down payment can be a challenge for many homebuyers—that’s why we offer a variety of down payment assistance products to help make the dream of homeownership a reality.
Whether you're a first-time homebuyer, a veteran, looking for financing in a rural area, or something else, we work with counties across the nation to offer over five hundred down payment assistance programs that help you become a homeowner, sooner.
What is down payment assistance (DPA) and what does it involve?
Down payment assistance programs were created to help first-time homebuyers cover the costs associated with purchasing a home, such as the down payment and closing costs. These programs vary from county to county and are designed to provide financial support to those who need help to achieve homeownership.
DPA programs may be offered by government agencies, non-profit organizations, or even private lenders, and can take the form of grants, loans, or a combination of both. The terms and conditions of these programs can vary widely, but the ultimate goal is to make the home buying process more accessible and affordable for first-time buyers.
In addition to financial support, many DPA programs also offer resources and education to help homebuyers navigate the home buying process, understand their financing options, and make informed decisions about homeownership.
How do down payment assistance (DPA) programs function?
DPA is typically granted in the form of a loan or grant and is secured by a lien on the property; it may also be forgiven gradually over a period of time. The eligibility for DPA is often determined by income, but this may differ based on the location of a property.
Overall, down payment assistance programs play an important role in making homeownership more accessible and affordable for a variety of individuals, including first-time homebuyers, veterans, and those living in rural areas.
Who can qualify for a down payment assistance program:
- First-time homebuyers
- Individuals with incomes below area median levels
- Borrowers with little to no money saved for a down payment
- Homebuyers living in rural areas
- Veterans and active military personnel
- Individuals with disabilities
- Homebuyers who meet credit and other eligibility requirements as determined by the program
Benefits of a down payment assistance program:
- Reduce the amount of upfront costs required to purchase a home, making homeownership more accessible and affordable
- Assist with covering the down payment and closing costs
- Provide a loan or grant that is secured as a lien against the property
- Offer the possibility of loan or grant forgiveness over time
- Provide resources and education to help individuals better understand the home buying process and financing options
- Cater to a variety of individuals, including first-time homebuyers, veterans, and those living in low-income or rural areas
- Encourage sustainable homeownership and increase stability in local communities
There's a down payment assistance product for everyone—if you're not sure which one is right for you, reach out to your neighborhood Mortgage Advisor today.