Down Payment Assistance
Start With a Good Lender
Last week the discussion was about the cash needed to close on a home. The amount of money can seem daunting but there is some help available. First of all, see a lender sooner rather than later. A good lender will help put together a financial plan which leads to buying a home! I can recommend several great lenders!
Down Payment Help – Local
There are some local programs for low-income homebuyers. Sadly the housing market has been so crazy that there are few homes for sale which will work for people in those income brackets. Give it a shot though
Washington State Housing Finance Commission
The WSHFC programs are the most used programs in this area. There is an income limit but it is higher than the Tri-Cities Home program. To qualify there is a 5 hour class about home ownership which is required. This program provides the money as a silent 2nd mortgage on the home which is due after 20 years, or when the home is sold. I am one of the instructors for this program, so call with questions!
Family Help
Many homebuyers turn to family for help with their down payment. If this is part of the equation make sure you talk to your lender about this early in the process. Usually a gift letter from the family member is needed, and the money must be transferred to the home buyer well before the home is purchased to “season it.” In other words, Grandpa cannot show up at closing with a handful of cash for you. The underwriter has to be able to see a paper trail showing the money has been in the home buyer’s possession for at least a month prior to closing.
Whichever method is used, one of these, or something else, the down payment is often the stumbling block for many people. As seen here, there are assistance programs to help you become a homeowner!