When you are a first-time home buyer, there are more than one problems you have to face. One of the significant problems is to have a sufficient down payment. Unlike second-time home buyers, the first-time buyers have no equity from selling their old property.
However, down payment assistance, Houston is available for first-time home buyers.
Understanding a Down Payment Assistance Program
You can get access to a down payment assistance Houston program through a local or state housing authority, nonprofit organization from the lender. The assistance program will pay you a set amount of money so you can cover your down payment expense. This money is either provided as grand, loan free of interest or a debt to be paid in the future.
These programs do have strict criteria. Therefore, qualifying for a down payment assistance program may seem like a hassle but it is not impossible. For example, one requirement is that you actually live in the property for which the money was acquired. You will have to use it as your principal residence for certain time period. This will help you avoid the situation where you have to repay the money.
On the other hand, if the money was acquired as a loan, it has to return in fill in case you sell the property. The same rule applies if you have complete your mortgage payments.
Qualification for the down payment assistance program may also depend on your income; a percentage that can vary from state to state. Some programs also require the qualifiers to complete a training to learn about the mortgage process and financial responsibilities they will have to fulfill.
In case you are a first-time home buyer, visit Houston Design Homes for more information about down payment assistance, Houston.