A few years ago I heard so much about these programs and now that I am buying my first home, I haven't found much that you don't have to be in poverty to afford. Basically I am buying a home, and looking for down payment assistance. I don't absolutely need it, but I am thinking that a little help would help out so I can save some money. If the program is there, why not use it, right? Anyone know of any programs out there?
Unfortunately, you are going to have a much harder time than you would have a month or so ago. Subprime loans are hard to come by and IIRC, banks are starting to shy away from high LTV ratios. Best advice i can give you: save money for a down payment so you don't have to worry about looking for a subprime loan. It will benefit you in the long run.
there are bond programs out there for fort bend county as well as public servant (teacher, officer, firefighter) bonds that could go up to 6% towards down payment. those are the only ones i believe that are out there.
If you are buying a home here is some guidelines for you to follow: Keep your mortgage payment (including taxes and insurance) at no more then 25% of your take home pay. They will try and sell you on the 40% formula but you will regret it when your property taxes esculate each year. Only go with a 15 year fixed rate mortgage, stay away from 30 year plans and ARMS. Make sure you have an emergency fund of 3-6 months expenses tucked away. If you don't Murphy will come move into your spare bedroom. If you can afford it put a 20% downpayment, you will avoid mortgage protection insurance which can add up over time. Most importantly don't rush into a home just to own a home. if you can't follow the guidelines above wait a year or so and stash as much cash away as you can towards your goal of owning a home. The housing market is beginning to crumble and you might find some sweet deals in a year or so and be able to afford them. Good luck!
http://www.myfirsttexashome.com Bond funded by the state of Texas. I had plenty in the bank for downpayment, and I'm a software engineer making decent money. As a first time homebuyer I qualified and I got a 30 year fixed 5.625% interest rate on my mortgage. The only drawback is that you have to pay close attention to the site because funding goes fast. But if you find a property you can get your lender to lock down the money for you. Make sure your lender can participate. When in doubt, just use the website to find one. But it's not a gimmick like most of privately funded ones are. It's totally funded by the state government. But like I said, funding goes fast, so keep your eyes open for the next one to pop up. (or for one of the older ones to free up money)
How much should be saved for a down payment? I have heard everything from 5-25%. I hope to buy a new home in the next 3-4 years.
lol using this advice I can afford about a 80,000$ home That could maybe get me a nice trailer home or an uncleared lot in austin. yay Not saying that this is bad advice, but it is probably unrealistic for 85% of America.
Oddson has some good advice. I personally don't think 20% down is the way to go, but hey, if you have it and can afford to invest it, why not? I think a minimum of 10-15% down is a good starting point. You dont want to be "house poor" after you close IMO. (i.e. put all your money into buying a house and end up w/ nothing left).
Try looking into an FHA loan. Its a goverment program for first time home buyers and you don't have to put anything down on the house and the rates are very good, nor do you have to be in porverty to be accepted. Take a look at: http://www.fha.gov/buyer/loans.cfm Just for example..I live in a 160k home and my payments are just over a $1100 a month.
Thanks for the responses. I have been approved for a FHA loan, just trying to find down payment funding. Again I have the money, but if the funds are out there for the taking, I want it! Seemingly everything I have found is for people who are in poverty, but buying a $140k house . Pocket Rockets response is something I am looking for. Thanks for the responses.
Wish I knew about this before I bought my home several years ago. My rate isn't too bad 5.85 but I bet I could get better with FHA loans.
From what I understand there are a lot of non-profit orgainizations that do the down payment funding, and my lender got me approved by one, but the down payment fund that I recieved just got rolled into the amount of my loan.
