Buying a home is a big purchase, and sometimes a little help goes a long way. Some individuals, couples, or families may not have the funding necessary for a customary down payment when the perfect home comes along — even if they qualify for housing loans in every other respect. For some, keeping out of pocket costs to a minimum could mean the difference between buying now and waiting several years to become homeowners.
That’s why eLEND is participating in a down payment assistance program specifically designed for those who make a difference in other people’s lives, as well as first time home buyers. Offered by a governmental entity, the DPA Program allows eligible borrowers to receive down payment assistance in the form of a 2% or 3.5% grant on FHA purchases.
What is Down Payment Assistance?
Down payment assistance occurs when a portion of your down payment is funded through another source. Saving for a down payment is often one of the most significant barriers to home ownership, meaning that a DPA program like this one can be useful for borrowers seeking a more affordable lending solution when getting an FHA home loan.
Benefits of This Program
Help you purchase a home sooner
Many buyers remain on the sidelines, saving money and watching interest rates rise. Unlike some first-time home buyer programs, DPA programs provide grants (gifts) for your down payment and closing costs. These resources can immediately build your buying power, helping you take action on a purchase more quickly.
Live closer to work
In some cases, community service employees have trouble affording homes in the areas where they work. The DPA Program allows hometown heroes like police officers, firefighters, and teachers the ability to purchase a home within the community where they work, especially in high-cost areas.