Down payment assistance programs are available. Do you know what's available?
If you're looking to buy a home in Tampa or any of the surrounding cities, but think that you don't have enough money for a down payment, think again...
My goal is to help bring awareness and connect you to the down payment help that you need.
Now, there are dozens of down payment programs out there.
Some of these programs include things like:
- Grants
- Second mortgage programs
- Deferred payments and may be forgivable over time
- Tax credits
- House saving programs
- and more
Image Source: Down Payment Resource
What kind of down payment assistance do you qualify for?
Is down payment assistance available during Covid?
Down payment assistance is still available, even during Covid. Has Covid impacted the availability of down payment assistance over the last few months? Of course.
Now, not all housing programs are funded at all times - which is perfectly normal. Some programs are funded by seasonal funding sources. The city or the county, for example, may get money in the spring or fall and offer their money until funds are out.
The good thing is that at the beginning of Covid, when the markets were in turmoil, the FED stepped in and helped stabilize the market.
In short, down payment assistance programs, for the most part, are still functioning and in full operation. Only about 2% of down payment assistance programs had to pause temporarily.
What is the biggest barrier to home ownership for millennials?
One of the most common misperceptions in owning a home is NOT understanding home ownership requirements.
You don't have to have 20% down in order to buy a home. There are benefits to putting down 20% but it's certainly not a requirement.
The problem we're having today is this:
- Home values have gone up tremendously, even breaking records.
- Qualifying for a mortgage has become increasingly challenging since the housing crash of 2007-2008.
- Rental rates are also sky rocketing, making it extremely difficult to save up for a down payment.
- Student loan debts also make it hard to save up for a down payment.
- Even though many renters are financially ready to buy a home, they don't enter the market because they THINK they don't qualify.
Moreover, according to the Urban Institute: Barriers to Accessing Homeownership 2018, millennials today have these common misconceptions when asked about home ownership barriers:
Is down payments assistance only for first time home buyers?
This is another misconception, unfortunately. You do not need to be a first time home buyer in order to qualify for down payment assistance.
What is the definition of a first time home buyer?
A first time home buyer is simply someone who hasn't owned a home in the last three years.
Who qualifies for down payment assistance?
- First time homebuyer
- Repeat buyers
- Boomerang buyers