Assistance For Buyers

When it comes time to buy a home, you may need to strap on your thinking cap to come up with some creative ways to boost affordability. This can come in the form of assistance programs, special financing, leasing, and mortgage ideas.

Let's take a moment to explore a few of these options.

The first order of business could be to sit down with your family to see what assistance they'd be happy to offer. You may find that a father or grandmother would be more than happy to co-sign on a loan, or even offer you a loan at low, or zero, percent interest. You could also discuss a shared-appreciation or shared-equity arrangement. This is when a family member buys a portion of the prospective home, and then are able to share in its appreciative value when it is sold.

Next, be sure to look into buyer assistance programs.

The Department of Housing and Urban Development (HUD) has a link you can find on their website, which links to each state and their respective programs. You'll find such things as programs to help fund rural housing, as well as information on Habitat for Humanity.

The Federal Housing Agency (FHA) offers many downpayment assistance programs. The FHA offers this statement: "Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to achieve homeownership."

Take the AmeriDream program, for example. It "offers gift funds up to 10% of the home's purchase price which do not have to be paid back. Buyers must agree however, to return any funds that are not used toward down payments or closing costs and to return the funds if the sale of the home does not close on the scheduled closing date."

Or how about the Genesis Program, also known as Grant America. This is a non-profit down payment assistance program operated by the Penobscot Indian Tribal Nation and is HUD-approved to offer up to $34,000 in assistance, even to those living outside tribal jurisdiction.

The Nehemiah Program, which has aided over 250,000 Americans in the pursuit of homeownership, offers down payment assistance to anyone who qualifies for an approved FHA loan. Buyers can get up to 6% of the final contract sales price for down payment and/or closing costs.

And The Responsible Home Ownership program offers down payment assistance to low-income individuals who have steady income and good credit.

Be sure to talk to your local real estate agent about what options may be right for you. There are many paths to home ownership, and one will be the right one for you.

Published on Realty Times
Written by Carla L. Davis
June 7, 2010

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