“I don’t have money for the down payment”
Many renters don’t pursue home ownership because they feel like they could never save up enough for a down payment.
But what they may not know is there are mortgages out there that require low down payments…you don’t need 20% of the purchase price as a down payment.
In fact, depending on your rent, a down payment could be equivalent to having to pay a landlord:
- The first month’s rent
- The last month’s rent
- A month and a half security deposit…
…before you can move in.
So if you can somehow manage to come up with those three things in order to rent a place, you can probably come up with a decent enough amount to put down on the purchase of a house. (By the way, delaying your purchase while trying to save up for a larger down payment will mean delaying all the financial benefits of home ownership. In otherwords, waiting could actually COST you money)
Here are a couple of programs that are geared towards first time homeowners that require little or no down payment.
1.. The Virginia Housing Development Authority – Amongst other programs within VHDA is The VHDA Down Payment Assistance Grant – Qualified first-time homebuyers may receive a percentage of the purchase price to help with the down payment in the form of a GRANT. See link for more details, as well as income and credit requirements. I am a member of VHDA’s Real Estate Agent Connection, (which means I have completed their Real Estate Professional Training program, receive regular updates about programs that could benefit you, and am familiar in addressing the special concerns of first-time homebuyers.).
2. Home Partners of America – I have partnered with the Home Partners of America to help make homeownership a reality for more people through their Lease with Right to Purchase Program. With our help, you can find a home in a community you want to live in and lease the property for up to 5 years (in most areas). You have the option of purchasing the home at any time during your residency. You have the right to purchase the home or the option of walking away without penalty at the end of your lease. This program gives you the opportunity to realize the dream of owning your home. Click on this link to Home Partners of America for more details about their program, as well as income and credit requirements.
I would be happy to answer any questions you may have about these terrific home ownership programs. Another way to find out how little of a down payment you would need is to call a mortgage professional – they have access to other programs not listed here that you may qualify for. I have mentioned a couple of great lenders in my previous posts…but if you would like this information, just shoot me an email and I will be happy send you their contact info.