Down Payment Assistance
Coming up with a down payment can be an obstacle for many first-time home buyers. But, there are a variety of loan programs that may be available to assist first-time home buyers with a reduction in the amount of down payment required.
How to Get A Lower Down Payment
There are many options available for down payment assistance. Maryland’s down payment assistance program, the Maryland Mortgage Program (MMP), is a loan program funded by the state’s Housing Finance Agency. It offers down payment and closing cost assistance, fixed competitive interest rates, and free homebuyer education programs. Some of these loans are interest-free, some programs offer deferred loans and still others offer reduced interest rates that. Be sure to ask your lender if they are a participating provider for the MMP programs. If so, they can help you determine the programs for which you may qualify.
Another down payment program to consider is a Federal Housing Administration (FHA) loan. FHA loan programs offer low interest rates and less stringent guidelines than a conventional loan. This can be a great option for home buyers with less than perfect credit. These programs offer down payment options as low as 3.5% – a huge attraction for most first-time buyers.
0% Down Payment Programs
For qualified Veterans, Service members and even eligible surviving spouses, the VA loan program may provide you the opportunity to buy a home with no money down! This program is available through private lenders, banks and mortgage companies and guaranteed by the VA, which provides the borrower with very favorable terms.
Another great program is the USDA loan program offered by the U.S. Dept. of Agriculture. This program is specifically designed for homes being purchased in rural areas. These programs offer buyers low and no down payment programs that reduce out of pocket costs. Check with your lender for current guidelines on income and credit requirements.
The Donnelly Group also provides Free Workshops for First Time Home Buyers and is devoted to effectively communicating with you throughout the entire process. Contact the agents that are in the top 1% of Maryland at The Donnelly Group for a list of preferred local lenders who have experience with these types of programs.