Everybody dreams of owning their own home. It brings a sense of freedom and pride for the homeowner. Buying a home, however, requires a large amount in down payment: 20% of your home’s cost.
The cost is usually too big an amount for most people and one of the leading stumbling blocks to home ownership. As a solution, many residents in Ogden look for down payment assistance from the federal government.
Here are some of the federal assistance programs that can help you get a home:
1. Federal Housing Administration (FHA) Programs
FHA loans are the best choice for low-income homebuyers. FHA mortgages present more affordable loan terms compared to standard options. Rather than asking for the usual 20% down payment, FHA loans only require 3.5%. Loan applicants need credit scores of not less than 620 to qualify for this type of home loans while most private lenders require scores of 700 and above.
2. US Treasury and HUD Programs
Plans to support homebuyers who cannot afford 20% down payment are also offered by the Departments of Housing and Urban Development and Treasury. The HUD is a part of the FHA and provides limited mortgage relief for unemployed individuals. Also, the Treasury Department guarantees mortgages to help millions of potential homeowners get assistance with their down payments.
3. Veteran Programs
Military veterans and their spouses might qualify for down payment assistance through the US Department of Veteran Affairs. VA mortgages mostly require no down payment from homebuyers. Eligible individuals might be needed to pay some fees for the loan service based on the veteran’s service.
You can find these federal down payment assistance programs through mortgage lenders. Community-based credit unions are one of the best mortgage lenders you can opt for. They offer lower interest rates and have more flexibility in their services and fees compared to other options. They can give you advice on the best options for your mortgage.