Tag Archives: Downpayment Assistance

Saving Up for a Down Payment on a House? Down Payment Assistance Programs May Speed Up the Process!

27 Monday Jan 2025

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A big hurdle for many people who’d like to buy a house is saving up enough money for a down payment. But many people make that hurdle higher than it needs to be by aiming for a 20% down payment. According to Lending Tree, 31% of Americans still believe they need that much of a down payment in order to buy a house. And the percentage is even higher (at nearly 40%) for Gen Z, Millennials, and parents who have children under the age of 18.

Considering so many people think that’s the case, it may come as a surprise that the average down payment for a house came in at 14.4%, which amounted to a median of $34,248, as Forbes recently reported. It’s lower because while some people certainly do put 20% or more down on a house, many home buyers take advantage of loans that allow them to put down as little as 3%.

Just knowing that can certainly make owning a home attainable more quickly, but even saving up for a lower down payment can be difficult, and take more time than you want it to. It can be hard to set aside money for a down payment when you have to pay your bills, put food on the table, pay off student loans, and/or deal with unexpected expenses. 

So, how incredible would it be if you could get some help coming up with a down payment?! Well, you might be in luck…

There Are More than 2,000 Down Payment Assistance Programs

There are more than 2,000 down payment assistance (DPA) programs nationwide, which offer loans and grants which home buyers can use toward a down payment and closing costs when purchasing a house. They even included a state-by-state list of some of the programs available that you can use to get an idea of what’s available. The amounts vary, but can be anywhere from a few thousand to tens of thousands of dollars.

As you might expect, each program has qualifications and criteria you need to meet, but if you do, these are the four main types of assistance that are typically available:

  • Grants, which you don’t have to pay back. 
  • Loans that you pay back a little bit each month in addition to your monthly mortgage payment.
  • Deferred loans that only have to be paid back if you sell the house or refinance the mortgage.
  • Forgivable loans that don’t need to be repaid if you live in the house for a certain period of time.

While the article listed some of the programs available, they also suggest researching what else might be available in your area, because many programs are local and specific to an area. So use your favorite search engine to discover other potential money available to you. In addition, make sure to ask your local real estate agent or mortgage advisor for their insight and advice. 

It May Take Some Time and Effort, but It’s Worth It

Beyond the time it takes to find and assess all of your options, the application and approval process could add to the amount of time it takes for you to find a lender that can work with down payment assistance and get approved for the particular program and loan.

Depending upon the available programs, you may also find that there are limits to the amount you can spend on a house, or where you’re allowed to buy a house. While it may feel like you’re being limited, or make it difficult to find many houses within the price range in your area, consider the alternative. Buying a home within the budget and limitations afforded to you by one of these programs can save you months, or even years of saving up money for a down payment, and get you into a house much sooner. Doing so will get you on your way to building equity through paying down your mortgage, and benefitting from any increases in value the market creates, or that you generate by improving the property.

The Good News:

The Hanley Home Team’s incredibly helpful Down Payment Assistance Programs link on our website homepage which aggregates all the available programs for a particular home for you! Easy Breezy! https://hanleyhometeam.kw.com/down-payment-assistance or get in touch with Kevin Hanley today to discuss your mortgage options! Kevin and Jennifer Hanley, REALTORs The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com – Kevin Hanley, Loan Officer, LoanPeople 904-422-7626 NMLS2639641 KevinHanleyJax.com

Use These Habits to Successfully Save for a Down Payment

08 Wednesday Nov 2023

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For most people, saving for a down payment is one of the first steps towards making their dream of homeownership a reality. But saving a significant chunk of change requires discipline, and the right habits.

So, what habits should you establish if you want to buy a home in the not-so-distant future?

A recent video from realtor.com outlined key habits to get into when you’re saving to purchase a home, including:

  • Cut back wherever possible. If you want to save for a down payment, you need to review your budget and look for areas to cut back. And any expenses that aren’t strictly necessary — or, in other words, indulgences — are a great place to start. For example, instead of grabbing a coffee on the way to work every morning, start making coffee at home. Or, if you subscribe to multiple streaming services, choose your favorite and then cancel the rest. Those savings will add up!
  • Create a separate savings account for your down payment. When all your money is lumped together in a single account, it can be easy to spend money that you earmarked for savings. Instead, open a separate savings account for your down payment, set up an auto-deposit each week, and commit to not spending that money on anything but your new home.
  • Do a homeownership trial run. Saving up for a down payment is the first step in the process. But you also need to be able to afford the home once you buy it. To make sure your current income can cover the costs of owning a home, estimate how much your monthly expenses will be, including your mortgage, insurance, and maintenance costs. Then, choose a month to act as if those expenses are real and see if you can get by with what’s leftover. If you make it to the end of the month without going into debt, you have an accurate budget. But if you can’t get through the month, either cut back on expenses or consider buying a more affordable home.

*Check out our website for an entire page of hundreds of downpayment assistance opportunities – HanleyHomeTeam.com – Kevin and Jennifer Hanley, REALTORs The Hanley Home Team of Keller Williams Realty Southside 904-515-2479

Downpayment Assistance

26 Thursday Jan 2023

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Did you know 78% of the homes listed right now in Northeast Florida are eligible for some sort of downpayment and/or closing costs assistance? There are currently 44 programs and 28 agencies with available funds with purchase prices up to $415,000! Downpayment help is usually from $5000 to $45,000 – the average being $14,000!  

Are you eligible? Get in touch with us now or use this link to check online! Downpayment Money

Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 or HanleyHomeTeam.com

Need Help With Your Down Payment? Consider These Unconventional Strategies

25 Tuesday Oct 2022

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Having a large down payment can make it easier to buy a home. But if your savings account isn’t where you’d like it to be, that doesn’t mean you can’t come up with a solid down payment; you just might need to think outside of the box

So what are some out-of-the-box strategies you might be able to use to get the down payment you need to buy your dream home?

A recent article from realtor.com outlined lesser-known strategies potential homebuyers can leverage to come up with a down payment, including:

  • Tap into your IRA. If you’re a first-time homebuyer, you can withdraw money from your IRA for a down payment, without having to pay the 10 percent early withdrawal penalty or restore the funds to your account. (Just keep in mind you will have to pay taxes on whatever you withdraw from your account.)
  • Explore assistance programs. Many cities, states, and nonprofit organizations offer down payment assistance programs to help certain types of people (for example, teachers, civil servants, or people below a certain income threshold) successfully purchase homes. Do your research to see if you qualify; if so, you may be able to get a solid portion of your down payment covered, which will make it easier to buy a home. Check our homepage for an exhaustive list of assistance programs – HanleyHomeTeam.com
  • Talk to your employer. Some companies have employee-assisted housing programs that offer employees low-interest (or even zero-interest!) loans to help them purchase a home. While this certainly isn’t a perk that every employer offers, if you think it may be something your company offers, talk to your supervisor or human resources department to see if you qualify.

Let’s get creative! Kevin and Jennifer Hanley, REALTORS, The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com