Becoming a homeowner can be a challenge when you are dealing with minimum savings to use towards your purchase. Most buyers will be required to pay a down payment of some amount. If you can qualify for FHA financing, the down payment requirement is 3.5% of the sales price. For example, if the house is $120,000, your down payment would be $4,200. FHA requires that the down payment funds come from the buyer's own money OR gifted to the buyer from a family member willing to do so. The gift funds would have to be documented correctly, so if you are a prospective buyer considering the use of gifted funds, contact a lender first to inquire how it should be done.
So, what happens if you don't have your own funds to use for down payment and no relative is in a position to gift the funds to you?? There is still hope. There are a few buyer assistance programs which offer up to a 5% grant to be used towards your down payment and closing cost. Some of them have certain income maximum requirements and others are specifically for certain professions (educators, firefighters, police officers, etc.). For more information on some these assistance programs and the eligibility requirements for each, you can visit:
So to all prospective buyers considering purchasing, there are some different ways to arrive at the same end result of becoming a homeowner. Contact a good Realtor today and allow one of us to assist you on your path to homeownership!
To post a comment on this blog post, you must be an HAR Account subscriber, or a member of HAR. If you are an HAR Account subscriber or a member of HAR, please click here to sign in. If you would like to create an HAR Account account, please click here.
Erase note
You currently have no custom folders