HOW TO FIND DOWN PAYMENT ASSISTANCE PROGRAMS

You just found your dream home in Houston, and its within your budget! One thing has you scratching your head though, how are you going to come up with the 20% down payment? Youre worried that if you cant find the money for the deposit, youll lose your chance to buy your perfect house.

Dont worry just yet. Many Texas homebuyers are surprised to learn that there are a variety of down payment programs available to themthere are more than 2,200 down payment programs in the US that might be able to help. We know the best ones that apply in Houston, so dont hesitate to reach out. A little information about down payment assistance may be the only thing youre missing to buy your first home!

A lot of home shoppers dont even consider applying for any kind of down payment assistance. People might automatically assume theyre not going to qualify, or its just too much work, and not even worth the hassle. This isnt always the case! Lenders want to get more people into homes, and these kinds of programs can help, as long as you meet eligibility requirements.

Here are some tips to help you find a down payment assistance program thats right for you:

1) Search for government programs 
Depending on your state, county, or community, you might have down payment assistance available to you from one of many government entities. Check with the Federal Housing Administration (FHA) and Veterans Affairs (VA). Both of these bodies have home loan programs for individuals, and some have a down payment component. You can also find assistance options by consulting with your state on the Department of Housing or Urban Development websites.

2) Search for Local Neighborhood Stabilization Programs
Congress established the Neighborhood Stabilization Program (NSP) to help rebuild and sustain Texas areas with high rates of abandoned homes and foreclosures. If you need down payment help, searching for a home in an area thats a part of an NSP might be a great place to start.

Also, dont cross high priced home markets off your list just yet. Programs will usually adjust specific benefits and eligibility requirements based on a percentage range of the areas home prices and median income.

3) Special programs for certain buyers
Depending on the Texas community, you may qualify for down payment assistance if youre an educator, healthcare worker, firefighter, police officer, or another type of civic employee. If youre a first-time homebuyer or havent owned a home in more than three years (re-qualifying you as a first-time buyer), you could also qualify for down payment help.

4) Search online and ask around
Search websites such as Down Payment Resource, which calculates what kind of assistance you might be eligible for receiving based on your community, occupation, and income. You can also search for programs that provide loans, grants, or tax credits, or others that can help you come up with your down payment faster, cover closing costs, and help move you into your perfect home sooner than you would on your own.

Also check out your local Houston housing authorities, lenders, not-for-profit organizations, and even your employer. You might be surprised with what kinds of special assistance you uncover. Even as youre searching home listings online, some listing services display a special badge on listings that could qualify for down payment assistance.