What is down payment assistance?
Down payment assistance (sometimes abbreviated to DPA) programs provide funding for down payments to homebuyers. There are different kinds of DPA programs run by local governments, non-profits, and private organizations. Depending on where you live and which program you qualify for, at Team Alex Down Payment Programs, our goal is to make homebuying accessible to more people.
What are the benefits of down payment assistance?
The first and most obvious benefit of down payment assistance is that it enables you to buy a home without the upfront cost of saving for the down payment.
For many home buyers, this means owning a home sooner and more affordably. Buying a home early rather than waiting to save for a down payment can save you money and help you to build equity in the long term.
It can also have a number of other benefits. First, it means you can put in a more competitive offer, which is especially important when the market is hot.
Down payment assistance also helps to lower your overall mortgage amount, which means smaller monthly payments and less money spent over time. When you work with Team Alex, it also means you get support throughout the entire process of buying a home.
Who qualifies for down payment assistance?
Qualifications will vary by state, but typical requirements include:
Low to moderate income
Moderate credit score (usually over 600)
First-time home buyer (or no homeownership in the past 3 years)
Must live in the property (ie. you can’t use down payment assistance for a rental or investment property)
When you start working with us, we’ll walk you through all of your local requirements and figure out exactly what you qualify for.
How does down payment assistance work?
First, you’ll have to apply for down payment assistance. This is how we confirm whether you’re qualified and how much you qualify for. We’ll walk you through this application process. If you qualify, you’ll receive assistance in one of five forms:
Grants
You receive money for your down payment as a gift. You do not have to repay it ever!
Forgivable Loan
You receive a loan with a 0% interest rate that is forgiven after a certain amount of time (usually 5-15 years).
Deferred Loan
You receive a loan to cover your down payment with a 0% interest rate. Whenever you sell or refinance your home, you will have to repay the loan, usually using the proceeds from the sale.
Low-Interest Loan
You will receive a loan with a low interest rate, and you make payments every month after closing on your new home. This works as a second, smaller mortgage.
At Team Alex, we coordinate with federal and state funding to provide access to all of these options. We will also organize education on the home buying and mortgage process. We want to empower all of our home buyers to make the best financial decisions, and to feel in control of the process
How to choose a down payment assistance program
The goal of a legitimate DPA program is to make is easier for you to purchase a home. Assistance should either come at little or no cost to you. We also suggest you look for a company with good customer service. Purchasing a home is a stressful, often complicated process. You want to work with a team who can answer your questions and provide you with support. We have years of experience in the real estate industry and want to use it to make things easier for you. Our customers often tell us that they felt overwhelmed at the start of the financing process, but in control by the end. When you work with us, you will have support throughout the home buying process.
Why choose us for down payment assistance?
At Team Alex, we coordinate with federal and state funding to provide access to all of these options. We will also organize education on the home buying and mortgage process. We want to empower all of our home buyers to make the best financial decisions, and to feel in control of the process
Experienced
At Team Alex, we coordinate with federal and state funding to provide access to all of these options. We will also organize education on the home buying and mortgage process. We want to empower all of our home buyers to make the best financial decisions, and to feel in control of the process
Customer Service
When you work with a provider for down payment assistance, you want to have access to customer service when you need it. That’s why customer service is at the center of our down payment assistance work. We have extensive hours and make it a priority to get back to you quickly whenever you have a question or need our help. We’ll spend the time to make sure you understand every step of the process and are making informed decisions. Our goal is to make purchasing a home as easy as possible for you.
Proven Track Record of Helping Families Become Home Owners
The best evidence we can give you is the feedback from our happy customers. You can watch our video testimonials below.
Full-Service Support
In addition to down payment assistance, we offer complete realtor and financing support during the home buying process. Once you’re approved for a loan, we will help you to shop for a property, coordinate the home inspection, negotiate for repairs and renovations, and close the purchase deal. We’ll make sure you get the best possible deal and a home that meets all of your needs. We can’t wait to see you in your new home!