The struggle is real for Americans seeking to buy their first home. Saving for a down payment still holds the number 1 spot for obstacles when looking to purchase a home. Let’s face some of the facts:
- 70% of renters cite the down payment as a greater barrier to home ownership than debt, job security and qualifying for a mortgage
- 20% down payment on a home costs more than two-thirds of the U.S. median household annual income
- One in five renters now say they have no interest in ever owning a home
- Almost 40 million Americans “live in housing they cannot afford”
More often than not, anyone reading the above statistics won’t be that shocked because they were once a part, know someone who is, or are currently a part of those statistics. For those able to relate in any way, shape, or form, what you choose to do next is CRUCIAL. Don’t throw in the towel just yet because there are options for aspiring home owners unable to save for a down payment:
5 Down Payment Assistance facts you didn't know
1. Not just for low-income families
There are programs with income requirements but not all of them focus on lower-income buyers.
2. High-cost areas have DPA programs too
The amount of assistance is based on a percentage of the area's median income and home prices.
3. You don't have to be a first-time buyer
Some programs may consider you as a first-time buyer if you have not owned a primary residence within the last 3 years.
4. Programs may vary by state or country
The assistance received can either be a flat dollar amount or a percentage of the purchase price – usually between 1-10%
5. Lenders must be approved to underwrite down payment assistance programs
Platinum Home mortgage has a team of professionals constantly looking for new program information in all 50 states to better serve all homebuyers.
Take the next steps towards owning a home!