10 Requirements to Qualify for Down Payment Assistant Programs
Hello and welcome. There are various down payment assistant programs currently available that are managed and funded by sources that included federal, state, county and local government agencies. These down payment assistant programs typically come in various forms that include but not limited to, forgivable loans, no interest loans, and grants.
One of the great things about these programs is that they provide eligible first time home buyers with funds to cover their down payment and or closing cost. Although programs requirements will vary, here are 10 requirement you may need to meet to qualify to receive down payment assistance.
Credit score requirement may vary but typically need to be between 620-640
Income limit- household income may need to be below 80% of the area median income. (Your loan office will advice you)
Debt to income - ratio may vary but typically need to falls within 39% front end and 42% back end.
First time home buyer status - buyer must be a first time home buyer or have not owned a home in the last three years.
Complete the home buyer education course.
Depending on the program, the property you choose may need to meet specific standards set by the program.
Depending on the program, you may need to have less than $30,000 in liquid assets.
Property must be owner occupied.
Must be buyer’s primary resident.
Cannot be used for investment properties.
As mentioned above, requirements may vary depending on the program. However, do keep in mind the requirements are in place to ensure the assistance is directed to those who need it the most.
As always, thank you so much for stopping by. Remember, if you or someone you know is thinking of purchasing a first home, please give us a call or Email us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time..
