Down Payment Assistance

Help is on the way

Details:

The assistance can come in several forms such as

• Grants (free money without having to repay)
• No repayment required as long as the borrower meets program conditions (usually occupancy for a certain period).

• Forgivable loans
• Structured as second mortgages but forgiven over time
• No monthly payments
• If the borrower stays in the home for the full term, the loan is forgiven entirely.

• Deferred Payment Loans
• Structured as second mortgages, but repayment is deferred until the borrower sells, refinances, or pays off first mortgage.
• No monthly payments, but the balance remains until the trigger event.

• Low-Interest Second Loans
• Repayable second mortgages with a low fixed interest rate.
• Paid monthly along with the primary mortgage.

• Matched Savings Programs
• The borrower saves a certain amount and the program matches the savings (e.g., 2-to-1 or 3-to-1 match).
• Often run by nonprofits or local agencies.