Myths to assist with the deposit

One of the main hurdles preventing potential homebuyers from purchasing a home is the down payment required.

Unfortunately, there are many myths about down payments, including who is eligible for down payment assistance, which loans are compatible with down payment assistance, how long it takes to complete with down payment assistance programs, and much more.

Let’s clear up some of these myths once and for all.

Myth: Only first-time home buyers can get down payment assistance.

Although many home ownership programs are aimed at first-time buyers, there are a number of programs for repeat buyers as well. These programs, specific to first-time home buyers, use the Department of Housing and Urban Development’s definition of first-time home buyers as anyone who has not owned a home in three years.

However, most agencies require the primary residence of the house to qualify, so assistance buying a rental home may not be available. In addition, buying a home in certain areas could lead to the waiver of the first-time buyer obligation. Often times, veterans are also eligible for an initial homebuyer waiver.

Myth: Aid programs are no longer funded.

There are hundreds of millions of dollars in publicly and privately funded down payments, tax credits, affordable fixed-rate mortgages, and rehab loans across the country. Mid-Michigan home buyers have 15 deposit support programs available to them.

Myth: It is difficult to qualify for homebuyer programs.

The Greater Lansing Association of REALTORS® has fully integrated down payment assistance programs with listing dates to highlight properties eligible for down payment assistance programs. This integration makes it easy for homebuyers to see which programs they qualify for. While you are looking for an apartment on www.lansing-realestate.com, the qualified properties will be marked with the green deposit logo, as can be seen here:

From there, homebuyers can find out more information about programs that are right for them and contact REALTORS® or local lenders for more information on specific programs.

Myth: Using a down payment aid makes home financing difficult.

Significant paperwork is required to qualify for and take advantage of a homebuyer program and is comparable to securing a first mortgage. The key is to start the process early on the home buying journey to ensure a smooth and successful transaction. Working with a trained lender is critical to making down payment assistance financing easy. Check with your REALTOR® to find out which lenders are knowledgeable about deposit support programs in Mid-Michigan.

Myth: Down payment assistance is only available for inexpensive houses.

In Mid-Michigan, the vast majority of homes for sale are eligible for one or more down payment assistance programs.

Consumers think that down payment programs are only available to cheap homes and / or lower income buyers because of the word “help” involved, but in Mid-Michigan home programs are up to $ 271,000 and income levels are up to $ 93,000 per year accessible.

Having a big family can help. The income limits are usually based on the size of the household. The boundaries of meaning for a family of six are significantly higher than for an individual.

Myth: Down Payment Help is only compatible with FHA loans.

FHA may be the most common or compatible primary mortgage option, but it is certainly not the only option. FHA loans have more flexible down payment requirements than some other types of loans that fit nicely but are not the only option.

Other loans that are also compatible with Down Payment Help are MSHDA, VA, USDA, and conventional loans.

The purchase price and the amount of support really determine which type of loan is best for a particular support program.

Myth: Down payment support programs require longer close periods.

Some of these programs can take a little longer than a typical transaction with no down payment support. However, buyers can begin a homebuyer training course required by down payment assistance before submitting an offer on a home. As long as the requirements are met early, it should not extend the closing process. REALTORS® can help home buyers find lenders experienced in down payment support programs that can keep buyers informed of every move.

Myth: It is beneficial for buyers to put more of their own money on a larger deposit.

The main concept of Down Payment Assistance is to allow buyers to keep some of their savings for the long term success of the home.

The application process lets prospective buyers know about the responsibilities and costs of the home, including equipment repairs, yard maintenance, heating and air checks, housekeeping, and more.

With a successful down payment assistance program, home buyers have cash to spend on home maintenance and a savings cushion for home emergencies.

REALTOR® members of the Greater Lansing Association of REALTORS can quickly and easily connect qualified buyers to properties eligible for down payment assistance. Find a local REALTOR® or lender at www.lansing-realestate.com to learn more about deposit support programs.

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