There are over 2,500 programs across the country that provide down payment assistance to qualified borrowers, most often first-time homebuyers. In the mortgage world, the definition of a “first-time homebuyer” includes people who have owned a home in the past but not in the last 3 years. It’s definitely worth checking, to see if you qualify, even if you think you probably don’t.
Often this assistance comes in the form of a grant or forgivable second mortgage loan – money that does not need to be repaid as long as certain conditions are met.
Those conditions vary widely from program to program, but could include:
- Property location
- Property price
- Income limits
- Your length of time in the home
- Participation in a homebuyer education course
There are also some programs out there with special eligibility. For example, you could qualify for special assistance if you belong to a certain demographic (i.e., Native American) or work for the U.S. Military or in education, law enforcement or healthcare.