What is down payment assistance?
Simply put, it is any kind of program that is designed to help people get into a home. That may be a very broad definition, but down payment assistance programs are not always programs that hand out free money by giving you cash in a suitcase – they can take many different forms.
Just a few of the different types of down payment assistance programs that may be available include:
- Silent seconds
- Delayed repayment loans
- Interest free loans
- Lender specific programs
Because there are so many different types of programs that may be available – it is advised that you find the right loan officer who is knowledgeable in programs in your area. Getting matched with a lender is free and easy with our lender matching service.
From Brad Yzermans, mortgage loan originator:
My biggest tip or advice is to make sure you are working with an experienced mortgage lender/loan officer when inquiring about these down payment assistance programs.
Very few loan officers are knowledgeable enough to know details about more than 1 or 2 programs and many will purposely steer buyers away from the programs because they don’t want to work with an assistance program. One or two programs is not enough considering in California alone there are over 260 fully funded down payment assistance programs.
There are literally millions of dollars in down payment assistance that go unused because lenders are not educating buyers about the programs simply because these assistance programs are less profitable than regular loans, like FHA, VA, USDA, Conventional loans.
A recent survey found that 70% of all adults are unaware that down payment assistance exist and that 87% of all homes qualify for a down payment assistance program.
If you are interested in learning more about what exactly down payment assistance is and whether or not you can qualify, start here. Get matched with a lender who will be able to help you learn more about the programs available in your area and what it takes to qualify for the programs. Getting matched with a lender is free, easy and only takes a few minutes.