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5 Ways to Solve Down Payment Problems

5 ways to solve down payment problems

One of the biggest misconceptions about home buying is the need for a 20% down payment.  This misconception usually discourages you to even consider buying a new home not knowing that this is not an absolute rule.  Here are “5 Ways to Solve Down Payment Problems.”

Check on Your Employer

Do you know that Employer Assisted Housing (EAH) programs help connect low-to-moderate income workers with downpayment assistance through their employer?  All you have to do is ask your HR or benefits personnel if your company is part of the EAH program,

EAH has a “double bottom line” strategy: It helps working families secure affordable housing near their workplaces— oftentimes helping them purchase their first home (a step toward building equity and financial assets)—while helping employers find and keep qualified workers, improve community relations, and revitalize neighborhoods.

EAH is an especially powerful tool for employers that are struggling with recruitment and retention. At the same time, it leverages an employer benefit to generate neighborhood revitalization and help meet the housing needs of low- and moderate-income working families.

Government Assistance

The U.S. Department of Housing and Urban Development (HUD) offers a number of homeownership programs including those based on profession.  These professions include law enforcement officers, firefighters, teachers, and EMTs.

The HOME Investment Partnerships Program (HOME) is a type of United States federal assistance provided by the U.S. Department of Housing and Urban Development (HUD) to States in order to provide decent and affordable housing, particularly housing for low- and very low-income Americans.

Crowdsourcing

You can also use crowdsourcing websites, like Kickstarter in order to fund your new home.  If crowdsourcing websites can be used to fund short films and concert tours, it might also be possible to use it for other purposes like this.

Lender Programs

Most mortgage lenders require a down payment of at least 3 percent. FHA loans (mortgages insured by the Federal Housing Administration) require a down payment of at least 3.5 percent. Depending on your credit history, the type of dwelling and your reason for buying, the minimum down payment could be 5 percent, 10 percent, 20 percent or more.

Home Mortgage Alliance Corporation Partners

Home Mortgage Alliance Corporation (NMLS #1165808) can also give you some help when it comes to securing a low down payment through our various partners.  You can call us at 800-900-7040 or e-mail info@homemac.com, tell us what you can afford and we can refer you to a particular partner.  Remember our goal is to help you achieve your homeownership dream.

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