I am gathering information on down payment assistance programs for people interested in buying a home in 2015. If you are aware of a current down payment assistance program please help in compiling an updated list.
The purpose is to let people know homeownership is possible. As rents continue to increase there is no reason not to make an investment in yourself and your family through owning a home. So far the list is short but I anticipate it growing with your help. If you have not owned a home in the past three years, you may be eligible to participate in down payment assistance and first time homebuyer programs.
If you live in one of these states you may be eligible for down payment assistance through special programs. You do not have to be a low-income homebuyer for most programs.
Alabama Down Payment Assistance
The Step Up Program. Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment. The down payment funds are secured by a 10-year second mortgage and are combined with a 30-year, fixed-rate first mortgage. Homeowners only have to write one check each month. Program participants must complete a homebuyer education course to qualify. Find out more.
California Down Payment Assistance
The California Homebuyer’s Downpayment Assistance Program (CHDAP) gives first-time home buyers loans of up to 3 percent of a home’s purchase to be used for down payment. Most residents of California use the CHDAP loan in conjunction with a FHA loan, which requires just 3.5% down at the time of purchase. CHDAP provides the majority of the required FHA down payment, leaving the home buyer to put just 0.5% of the purchase price down on a home. The loan for down payment is recorded on title as a second lien but no payments are due unless the home is sold, refinanced, or paid off in full. Find out more.
Georgia Down Payment Assistance
The Georgia Dream Homeownership Program. Borrowers who qualify for Georgia Dream First Mortgage Loans also qualify for down payment assistance of $5000. The borrower must use the loan in conjunction with a Georgia Dream First Mortgage Loan which are available to first-time home buyers and those who purchase a home in targeted areas. Find out more.
Florida Down Payment Assistance
Florida offers down payment assistance to eligible first-time homebuyers. To see what is available use Florida’s First Time Homebuyer Wizard.
North Carolina Down Payment Assistance
The North Carolina Home Advantage Mortgage Program. If you need help with the down payment and closing costs, you may qualify for interest-free, deferred, forgivable second mortgages up to 5% of the first mortgage loan amount. Repayment is required only if you sell, refinance or transfer the home before year 15 of the loan – the down payment assistance is forgiven at 20% per year after you live in the home for 10 years, and fully forgiven at 15 years. Find out more.
Ohio Down Payment Assistance
The Ohio Housing Finance Agency (OHFA) is offering down payment assistance in an amount of 2.5% of your home’s purchase price. The money can be used to pay for the down payment, closing costs or other prepaid expenses incurred prior to closing on the house. The down payment assistance comes in the form of a second mortgage with zero percent interest rate and no payment due unless you sell or refinance prior to 5 years. The loan is completely forgivable if you remain in the home for 5 years and do not refinance. Find out more here.
South Carolina Down Payment Assistance
South Carolina State Housing Finance & Development Authority. Based on income you may qualify for $5,000 in down payment assistance. The assistance consists of a $5,000 forgivable second mortgage. The borrower must live in the home for 5 years in order for the loan to be fully forgiven. If the home is sold prior to 5 years the loan has to be paid in full. Find out more.
Texas Down Payment Assistance
My First Texas Home Program 79. Texas has a lot of money for first time homebuyers. But the funds are available on a first come, first served basis. The program helps low-to-moderate income homebuyers purchase their first home. Mortgage loans with down payment and closing cost assistance are available. The amount of assistance is 5% of the mortgage amount. For example, $5,000 of assistance is available on a $100,000 mortgage. Find out more.