A look at down payment assistance programs
One of the most popular questions at our home buyer seminars is “What are the down payment assistance or first-time homebuyer programs available where I live?” There are various programs sponsored by multiple jurisdictions with the help of local banks, federal grants and loans as well.
Knowledgeable lenders in the area will direct their eligible borrowers to these programs when a home purchase is being considered.
Some of the programs are frequently mentioned in the local news: HPAP, EAHP, and DC Open Doors. There are also other options such as: • FHLB grant for down payment assistance and/or closing costs • Bank portfolio loans such as the Sandy Spring Bank loan, which can be 3% of the home purchase price – paired with a 97% first trust loan which is 100% financing at market rates • Citibank Home Run • Bank of America Down Payment Grant or Home Grant • Chase Dream Maker Grant • DC Open Doors – (DC Purchases only) • HPAP/EAHP (for DC purchases only, when funds are available.) All of these programs, grants, and loans come with guidelines and regulations, which may include income limits, household size limitations, geographic boundaries, homebuyer education classes, occupying the home as a primary residence, and funds availability.
Some are easier to use and implement than others. Others may be available but can take 60 or more days to close on a home purchase, where another buyer may offer a seller a 30-day close.
