Four Types Of Down Payment Assistance For Houston First Time Home Buyers

Hi and welcome to the first time home buyer's edition, where you can count on getting useful information to help you make the most informed, first time home buying decision. Thank you for stopping by. Today we're going to talk just briefly about the different types of down payment assistance that are available to you.

Down payment assistance programs are a great way for first time home buyers to cover the cost of their down payment and possibly closing cost as well. However, while there many different down payment assistance programs, there are only five different types of available assistance. They include Grants, deferred payment loan, forgivable loan, no interest loan and low interest and loan. Grants are the only types of down payment assistance that you do not have to repay.

Grants. comes in the form of a gift that you do not have to repay. However, keep in mind, the location of the house, your income and price of the home will all be factors in the eligibility process.

Deferred payment loan. Repayment will be required for this type of down payment assistance, when you sell, move, refinance or pay off the home.

Forgivable loan. This type of down payment assistance comes in the form of a loan, that will be forgiven over a set number of years (5-20). However, if you sell, move, or refinance the home before the stated years, you will need to repay the loan.

No interest down payment loan are down payment assistance that does not accrue any interest. You will only need to repay the principal amount you borrowed to cover your down payment cost.

Low interest down payment loan are down payment assistance that comes with below market rates, making it a lot more affordable for you to pay back, while enjoying your new home.

There you have it. As you can see from the five different types of down payment assistance listed, you do have options. The best person to speak with regarding which down payment assistance type is right for you, will be your loan officer. Your Realtor should be able to refer you to a few capable loan officers. Make sure to choose one that will answer all your questions, in addition to helping you to make the right decision.

As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact 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...Diana