WHAT IS DOWN PAYMENT ASSITANCE?

Many local and state agencies run bond programs to generate funds to help individuals and families with a down payment. Contrary to public thinking, these bond issues are not a type of welfare. The government knows that it can be tough to buy that first home, espically on a limited income.

Most agencies are income sensitive, but you may be suprised by the high level of acceptable income. The income level is espically high if you have children or dependents. Most agencies also have purchase limits, but they are adjusted to the income qualifications level.

If you are able to obtain down payment assistance, you may receive a lower interest rate. The drawback is that it often takes quite a bit of work with extra paperwork and mandatory education classes. Our advice, find a realtor or mortgage lender who is familar with both the local and state agencies and their policies.