What If I Don’t Have a Down Payment?
If you are considering purchasing a home, one of the first things you will need to consider is a down payment. The larger the percentage of the value of the home you have available as a down payment, the smaller the monthly payments will be in the future as the home is being paid off.
If you are not able to come up with a sizable down payment, there are still options available to you to purchase a home. There are many different homebuyer programs, and they can suit many different situations and backgrounds. Please contact us at Family First Mortgage in Lafayette to discuss what options we have for you.
Down Payment Programs
Down payment programs are specifically for second or third mortgages with zero percent interest and deferred payments. These programs can not only be applied towards the down payment of the home as well as closing costs and repairs. These benefits can fluctuate depending on the area’s average home prices so you don’t have to limit your search to homes that are on the lower end of the market when it comes to purchasing price.
If you have been instructed to focus your search on a specific area by a housing finance agency, you could be granted an even higher amount of assistance or less strict parameters in regard to your search. As a first time homebuyer, you will also be given some special assistance in most cases.
My First Mortgage
You can often get help from larger housing agencies to help with first mortgages along with down payment programs. These are usually offered at a below market interest rate with lower closing costs and fees, with limited requirements.
These are often funded by state housing agencies and will be determined by the local market to offer affordable rates lower than what is typically on the market, which helps keep monthly payments low.
Tax Credits Can Help Too
If you are a first-time homebuyer, you can offset a portion of the mortgage interest with the annual federal income tax credit. Since this is a credit and not a deduction, this can help reduce your overall taxes but does vary state to state, so it is important to discuss the details based on your specific housing area.
Contact Us Today
We know that purchasing a home, especially as a first-time homebuyer, can be a nerve racking process but we want to be there to help you figure out the first step in making it affordable. Please reach out to Family First Mortgage in Lafayette to discuss your options today.