Most buyers know that one of the biggest hurdles towards purchasing a home is having the sufficient money available to make the down payment. What many of them fail to realize is the availability of down payment assistance programs that can cut the cost a bit, and many potential buyers are failing to take advantage of these opportunities.
There are nearly 2,500 local down payment assistance programs across the United States that can significantly reduce the amount of money a buyer will be required to pay during the closing phase, yet many buyers and even some real estate agents remain unaware of them. Per a recent survey conducted by a real estate research firm, buyers that use these programs could save about $17,700+ in interest savings and down payment costs.
A home costing about $250,000 with a three percent down payment of $7,500 could result in a buyer having to pay upwards of $13,000 after factoring in costs such as loan origination fees, broker’s commission, title, recording and transfer taxes. With the assistance of a down payment program the closing costs could potentially be reduced dramatically to mere $200.
Down payment programs are typically offered through a variety of city and county organizations as well as through local housing finance agencies, nonprofits or even through an employer. These programs generally tend to offer about $10,00 and nearly ninety percent of homes across the country are eligible to receive financial assistance.
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