Down Payment Assistance To Purchase A Home

Home Buying
April 19, 2024

What to know about down payment assistance programs.

Down payment assistance programs are initiatives and benefits designed to help prospective homebuyers overcome the hurdle of accumulating a sizable down payment when purchasing a home. These programs are particularly beneficial for individuals or families who may have difficulty saving enough money for a down payment due to financial constraints and/or have credit challenges. Cardinal Financial, which is the preferred lender of HomeLoanGurus has their own exclusive down payment assistance program. Here's a breakdown of how they typically work:

  1. Financial Support: Down payment assistance programs provide financial assistance to qualified homebuyers, typically in the form of grants, loans, or second mortgages. This assistance can cover a portion or sometimes even the entire down payment required for purchasing a home.
  2. Eligibility Criteria: Each program has its own set of eligibility criteria, which may include factors such as income level, credit score, employment status, and location. Some programs are specifically tailored to assist first-time homebuyers, low-income individuals, or those purchasing homes in designated target areas.
  3. Types of Assistance: Assistance provided by these programs can vary. Some may offer grants that do not need to be repaid, while others may provide low-interest loans or forgivable loans that are gradually forgiven over time.
  4. Restrictions and Limitations: There are often restrictions and limitations associated with down payment assistance programs. These may include maximum income limits, limits on the purchase price of the home, occupancy requirements, and restrictions on the type of property that can be purchased.
  5. Government and Non-Profit Programs: Down payment assistance programs can be offered by government agencies at the federal, state, or local level, as well as by non-profit organizations and community development corporations. Each program may have its own funding sources and specific guidelines.
  6. Application Process: Prospective homebuyers interested in utilizing a down payment assistance program typically need to apply through the administering agency or organization. The application process may involve providing documentation of income, assets, employment, and other relevant information.
  7. Impact on Homeownership: These programs can significantly increase homeownership opportunities for individuals and families who would otherwise struggle to afford a down payment. By reducing the upfront costs associated with purchasing a home, down payment assistance programs help make homeownership more accessible and attainable for a broader range of people.

Cardinal Financial's exclusive program

Cardinal Financial offers their own down payment assistance program that is designed to be less restrictive and have broader coverage for home buyers. Here are the details:

  • Designed to help cover down payment and closing costs. With typical closing costs ranging from $6,000 - $10,000 this program provides benefits that may not be available elsewhere.
  • For families that have low to moderate income levels.
  • Available in all 50 states. This program is not restricted to specific areas or states like some of the government grants, etc.
  • Available for first time homebuyers. First time home buyers are considered as someone that hasn't owned a home in the last three years. This opens up a lot more opportunities for people that government based grants might not cover.
  • It is important to note that down payment assistance programs are for owner occupied buyers/homes, and not available for investment properties.

To learn more about Cardinal Financial's program available with HomeLoanGurus, speak with one of our representatives or a Loan Officer with Cardinal.

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