Down Payment Assistance Programs

While making a down payment can help you build equity faster in your home, it can be tough to find thousands of dollars to make one. This can be especially true when a first-time buyer may also be dealing with trying to furnish the home or make improvements to it at the same time. Let’s look at some down payment assistance options that can help a buyer come up with large sums of money quickly.

Ask Family Members or Friends for the Cash

If you are using an FHA loan or other type of government-backed loan product, it is generally permissible to ask friends or family members for money to use toward a down payment. Typically, the person making the gift has to show where the money came from as well as assert that he or she is making a gift and expects nothing in return. However, as a practical matter, there is nothing stopping a homeowner from voluntarily repaying that money in the future.

State or Local Government Programs May Exist

Many state and local governments will provide anywhere from $1,000 to $10,000 or more to help a person cover down payment and other closing costs. These programs are generally aimed at individuals who make below a certain income threshold or who are buying their first home. In return, a buyer is generally required to stay in the home for a certain period of time after buying it. (Learn more on why you should hire a mortgage broker here.)

Work With Professionals to Find Money

When buying a home, it is a good idea to make a 20 percent down payment. Doing so can eliminate the need for private mortgage insurance, which can raise your monthly mortgage payment. The best Las Vegas mortgage brokers can help you find programs or other sources of funding to make it easier to make the largest down payment possible.