Buying a home can be expensive. Among other things, the cost include a down payment, closing costs, and moving expenses to worry about. If you have been dreaming about buying a home and you need some help to get your foot in the door, down payment assistance may be an option for you. Down payment assistance often falls within two categories: a grant or a loan. You do not need to pay back a down payment assistance grant if you meet the program requirements. A down payment assistance loan you must pay back, but there may be no interest or low interest on the down payment loan, often called the second mortgage.

Some down payment grant and loan programs do charge a higher interest rate for the first mortgage, the larger loan that covers purchasing the home (not including the down payment). Whether or not down payment assistance is right for a home buyer will depend on each person’s specific situation. If you take a home buyer education course and you want to meet one-on-one with a HUD-approved housing counselor to know if down payment assistance is right for you, give us a call at 844-926-6632.