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down payment assistance program

The down payment assistance program … A dream come true for first-time homebuyers

Every first-time home buyer’s joy is in knowing they don’t have to give up on their dream home because of those eye-popping figures on paper. With a tremendous down payment plan, buyers can maintain their home choices with ease.  

The stress of house hunting. Source: The Economic Times

The search for a house has to be one of the most frustrating rat race pursuits ever. Nothing ever seems satisfying at first; either the rooms are too small, the kitchen doesn’t have enough windows, or the location is slightly off. There is always a glitch that is a deal-breaker.

But, it doesn’t have to be; with a team like Jays Agency, you’re sure to get a hitch-free search and ‘purch,’ a.k.a purchase. Jason Marzec is a digital marketer who understands the real estate industry; he has the goods to make you find your ideal home and cash in on a fantastic deal regardless of the price.

So as a new home buyer, once you find the one, it comes with a sigh of relief. After long months of searching, finally, it’s all about coming together. But the one thing that can be a drawback is payment.

Lots of first-time buyers lose out on the best home offers because of the financial commitment. Half the time, most people go for lesser choices believing they are saving money. In the next two years, the house no longer feels like home. The truth is, it never had the wow factor they wanted from the start.

Source: FHA Loans (Young couple standing in front of their dream home).

People don’t need to give up their dreams because some financial peg makes the product look too far-reaching! There has to be a way out, which is why there is a Down Payment Assistance (DPA) Program set aside for all first-time homebuyers who feel overwhelmed financially to meet their dream goals.

So, what is DPA exactly?

It’s simple. You spot your dream home, you want it, but you can’t afford it. DPA will be your heaven-sent angels to give you the opportunity of owning your home on a shared payment based on some requirements. Once you qualify, it seals the deal, and you will have your keys dangling in your face.

The beauty of this offer is that it gives buyers the confidence to go for more significant housing offers knowing they are under a program that doesn’t place any pressure for payment. Instead, you get to pay smaller and reasonable amounts comfortably.  Also, you get to have your home way sooner than expected because you don’t need to wait and raise the full money; DPA is at your service to make things happen quickly. Think of it this way, a $12,000 house today may not be the same amount next year or even in two years. You can’t delay payment once the price is right, which is why DPA is your sure meal ticket. They can off you grants, a zero-interest mortgage plan (which could be forgivable after some years or a deferred- payment), or even a low-interest second mortgage. The options are there for the choosing.

Source: NATIONAL ASSOCIATION OF REALTORS

Based on these offers, the National Association of Realtors records that more than half of homebuyers in April of 2021 made down payments of 20% or higher. A quarter of buyers paid for the entire home in cash. Its evidence of a good plan more buyers should access.

So how does it work?

The program is made available through states, cities, and counties. Mortgage and Finance offices, housing loan departments, and even the county government offices harbor these pieces of information just for new home buyers to know they don’t have to feel left out or denied specific amenities. There is always a way out, and once you key into the right agency to guide you, it can’t go wrong.

READ MORE: How to market the perfect home to first-time homebuyers 

However, notice there is a clause to be considered for this program. As not all loan grants or mortgage bodies approve the DPA program, the same applies to the program being selective of those who qualify. Since it is a big catch everyone in the category will be fishing for, there are perks to be considered;

Source: Dentons Rodyk (payslip)
  1. WHAT’S YOUR WAGE? 

One of the primary factors to put you on the yes list is your take-home pay. Earning a certain amount either as a single individual or a couple sets you up as a good candidate. The consideration rests on you having an income amount available for the purchase, and then the program will assist where your hands are tied.  It ensures you are qualified for the stipulated payment plan without hitches.

 

Source: Salary Explorer (Statistics on salaries based on experience.)

2. OCCUPATION 

Where do you work, and what is your position? The program needs to ascertain that you have a stable and supporting job. It shows a level of responsibility and assurance to note that you have steady pay from a regular job approved for mortgage lending processes. So, you seeking a defined home will be justifying.

 

Source: Bankrate (Dream homes on sale)

3. LOCATION 

The program is a benefit made available in strategic areas or cities. You need to have your dream home within the mapped region for your request to be considered. Suppose Cuyahoga County, Ohio is your chosen location based on a breathtaking home you saw on a visit, then you can’t expect a DPA in Austin, Texas, where you live to assist you. You either switch jobs or transfer to your newly discovered location, or you forfeit; it’s that simple. So, always take time to identify with the program based on your work location and finalizing residency.

Although some DPAs seek individuals who have completed a home buyer educational course, it is not always a criterion.

So as a first-time homebuyer, be alert to opportunities; ensure the DPA works with your mortgage lenders and take advantage of it. DPA has some approved mortgage plans they consider for selection;

  • FHA loans (backed by the Federal Housing Administration)
  • VA loans (supported by the Department of Veterans Affairs)
  • USDA loans (funded by the US Department of Agriculture)

The benefit and availability are endless. But, for every good story, there is always a downside. The program, for most, requires a 3% down payment from the buyer, which is quite reasonable. However, the buyer will have a higher mortgage insurance base in conversion, which isn’t great considering the payments. Also, there is the issue of the down payment of 20% upfront from the buyer for the house. Although this will convert to lower insurance, It’s pretty pricey for a start. But, it’s all about one thing; how badly do you want your home?

If it is that bad, then this is the perfect way to go. If you need more guidance on DPA in the Ohio region, check out the link below.

Mortgage Report for DPA in Ohio 

If you need an agent who understands the rigors first-time home buyers go through and can get you this close to an ideal DPA to make your dream home come true, Jason Marzec will have you covered 100%. Make that move today.

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Jason Marzec, CEO Jays Agency