For many home buyers, coming up with down payment funds is the #1 obstacle to becoming a homeowner. In fact, a recent article on National Mortgage News blames the slow housing recovery on lack of down payment funds among first-time buyers. While millennials are finding it tougher than their predecessors to save for a down payment – mostly due to student low debt and stagnant incomes – it’s the perception of needing to save more money that keeps many would-be buyers on the sidelines. Many still think they need 20% in order to buy a home. Not true!
The good news is that many loan programs require no down payment (USDA and VA loans) while others only require as little as 3.5%. In fact, at the NC Housing Finance Agency, we pride ourselves on offering the most flexible options for buyers who are able to pay for a new home but need down payment help. Our NC Home Advantage Mortgage™ even offers down payment options that cover 100% of your home purchase.
But our Agency isn’t the only source for down payment help. Many cities and counties offer their own down payment options. And in some cases, those down payment sources can be combined with our loan programs, maximizing your savings.
Some of the bigger cities such as Raleigh, Durham, and Charlotte have excellent home buyer programs. For example, the “House Charlotte” program that has helped hundreds of buyers become homeowners. Counties such as Forsyth also have successful programs. Search the Internet for your city or county name and “home buyer programs” to find out what options are available in your area.
While all programs have certain income limits and other guidelines, searching the Internet and talking to your real estate agent and lender can help you find the best match for your needs. Don’t let a lack of down payment funds keep you renting when you could be buying your first home – check out your options today!
