Down Payment Assistance Options for Potential Homebuyers

Even though becoming a new homeowner is a very exciting venture, many potential buyers can be worried that they may not have enough funding to make a down payment on a home. Fortunately, there are several available programs intended to help prospective borrowers that are interested in purchasing a property. If you have been looking to buy a home in Orchard Park, New York, and have questions regarding your home financing options, Nickel City Funding, Inc. can help. Read on to learn more about the many down payment assistance programs that may be available to you to help you become a homeowner.

How Do Down Payment Assistance Programs Work?

francesca-tosolini-XcVm8mn7NUM-unsplashDown payment assistance programs can be provided by both government and local programs and state housing financing agencies, and were created to make home ownership more affordable for borrowers. Even though most down payment assistance programs are intended for someone buying a home for the first time and offered with specific types of mortgages, a borrower may also qualify many of these programs if they have not owned a home in the past three years. People working in certain career fields also may qualify for certain down payment assistance programs such as educators, law enforcement officers, city employees, etc.

Common Types of Down Payment Assistance Programs That Are Available

There are a wide variety of programs available that can help a borrower afford a down payment on a home. Some common options include:

  • Zero interest loans with deferred payment – Loans that do not require a down payment or closing costs until the property is refinanced, sold, or when the mortgage has reached the end of its term.
  • Zero interest forgivable loans – Loans that can be forgiven over after a specified period of time. The loan does not need to be paid back if the owner continues to live in the home after the loan period is finished.
  • Grants – There are certain kinds of programs that are available to eligible borrowers that offer money for a down payment that is not required to be paid back.
  • Low interest loans – Loans that must be paid back after a fixed amount of time. They make home ownership possible by extending down payment and closing costs.

Requirements For Down Payment Assistance Programs

To qualify for a down payment assistance program, typical application requirements include:

  • A borrower must purchase a home in an approved area
  • A borrower must meet specific income requirements
  • A borrower must complete a guidance course for homebuyers
  • The property must not exceed a specified price, depending on its location

Get Help Applying For a Down Payment Assistance Program

If you are ready to purchase a home in Orchard Park, New York, Nickel City Funding, Inc. can help you understand the types of down payment assistance programs available to you. Contact us today for a consultation.

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Nickel City Funding, Inc.
3460 Seneca St.
West Seneca, NY 14224
Phone: 7165585200

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