Have you noticed how preconceived ideas keep you from experiencing something real and good? On many occasions, the preconceived ideas turn out to be nothing but misconceptions. Even in 2020, many borrowers are hung up on the myths and misconceptions around the down payment assistance. For instance, many borrowers think down payment assistance programs are only for first-time buyers. This thought only deprives potential buyers of discovering the feasible options.
In the past years, the number of people enrolling for down payment assistance to purchase homes in Texas has gone up. Unfortunately, many of them are not completely educated about the programs. You need a better understanding to prevent the homebuyers from making mistakes. Down payment assistance programs make the home-buying process cost-effective. As the home prices are on the rise, the assistance program brings much-needed relief. The program is also available for FHA, VA, USDA, and conventional loans. So, the program is not only for FHA loans either. In fact, the program helps a homebuyer boost purchasing power. Let’s debunk the common myths related to down payment assistance to purchase homes below.
Myth #1: Qualifying for the Program is not Easy
There are multiple keys and opportunities, and you need to rely on the right one. The main way to find success in this process is to research and review the criteria. In order to qualify for the program, the property needs to pass the particular criteria. Generally, the standard eligibility criteria involve sales price limits, type of home, and property location. Along with it, the buyer needs to receive a homebuyer education certification. If the lender needs to know, the homebuyers must explain how financially responsible they are. The assistance program has a credit score requirement along with cash reserve requirements. Check the program needs a little money down from a homebuyer. Gather information about the down payment assistance in the form of the second loan for future endeavors.
Myth #2: Only First-time Buyers Need Assistance
The term, ‘first-time buyers’, refers to buyers who have not purchased a home in the past three years. Check with lenders to understand whether they are willing to offer the program. The down payment assistance programs are only for homebuyers; hence, the investors cannot pass the eligibility criteria. Therefore, the lenders will provide you with the program as long as you are investing in it as your primary residence. The homebuyers also need to purchase the property in a designated county. Veterans are eligible for the program, but every borrower should check the credit score requirement before buying.
Myth #3: Buying a Home Becomes More Difficult
The process of being qualified for a down payment assistance program is quite similar to passing the eligibility criteria for a first home loan. You need to submit the necessary paperwork and undertake the effort of being eligible. It is wise to start the process early. Additionally, look for the lenders who are willing to walk you through the process.
By now, you have built an unbiased concept of a down payment assistance program in your mind. Start your research for the second loan as early as possible.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.