For many buyers, the down payment presents the biggest hurdle to homebuying — and many even put off their purchase because they don’t have enough saved. Fortunately, this isn’t usually necessary. Thanks to a number of state and federal assistance programs that are available, you may be eligible for help in covering your down payment, closing costs and other expenses associated with buying a home.
Do you need financial assistance to make your Lexington homebuying dreams a reality? Read on to learn more about available programs or contact Kelli Jacobson at Premier Nationwide Lending today for help.
The federal government, individual states and even non-profit and private organizations offer a plethora of programs designed to mitigate the up-front costs of buying a home. Though they’re usually dubbed “down payment assistance programs,” they often help cover closing costs and other expenses, too.
In some cases, these programs offer assistance by way of grants, which do not need to be paid back. They may also be offered via a second loan. These loans may need to be repaid (usually without interest), though some programs will waive the balance as long as you stay on the property long enough.
Eligibility for down payment assistance programs is usually tied to income level, location of the property, household size and other factors. The exact requirements vary from program to program, so get in touch with Kelli Jacobson at Premier today to learn about what programs you might be eligible for.
Many down payment assistance programs are aimed specifically at first-time buyers, hoping to spur homeownership in specific states or parts of the country. There are also first-time buyer loan programs, which offer low interest rates as well as down payment and closing cost assistance.
The availability of these programs varies from place to place, and in some cases, they may even be open to experienced homebuyers as well. Reach out to the Premier team for more info on what programs in Lexington you should consider.
MCCs, or mortgage credit certificates, aren’t down payment assistance programs per se, but they do offer you a way to offset your homebuying costs and the costs of homeownership down the line.
Mortgage credit certificates give you a dollar-for-dollar tax credit (basically lowering your annual tax burden) equal to 25 percent of your mortgage interest or $2,000. If you combine this with the mortgage interest deduction, MCCs can save you tens of thousands over the life of your loan.
You may consider an MCC if:
If you’d like to leverage the valuable MCC program or learn more about eligibility, get in touch with Kelli Jacobson at our Lexington office today.
Public servants may be eligible for the Good Neighbor Next Door program, which offers teachers, EMTs, firefighters, police officers and other public-facing workers up to 50 percent off certain properties. Some Good Neighbor programs also provide assistance with down payments and closing costs.
Need help covering the down payment, closing costs and other expenses associated with your Lexington home purchase? Contact Premier Nationwide Lending today. We’ll connect you with the right assistance programs in your area.