Blog > Is down payment assistance right for first time home buyers?

Is down payment assistance right for first time home buyers?

by www-4salearizona-comSeptember 06, 2019

We get asked on a regular basis about down payment assistance programs (dpa) for purchasing a home, whether first time buyer or a seasoned home buyer. There are many programs out there and the attached flyer will highlight the main 3 we see in the Phoenix market.

Obviously the goal of the dpa programs is for you to move into a home with as little out of pocket as possible. Between these programs and strong negotiations with sellers we are often able to get folks into their first home with only the earnest money, inspection and appraisal as out of pocket costs. With that said there are some negatives to a dpa program.

  1. Your interest rate is normally going to be higher than if you can put down the 3.5% required by FHA. Remember you can often use gifted funds from friends or family for your downpayment also.
  2. Your FICO score is going to need to be higher than a regular FHA loan.
  3. There are income limits. If you make over a certain amount you will not qualify for these programs.
  4. There are loan limits so that mansion on 5 acres probably won’t qualify!

Overall dpa programs may be a good fit for you. The first step is hiring a professional Realtor that can recommend several lenders to you and help you navigate the home buying process from start to finish. This is what I do on a daily basis. Click here to see a review from our latest first time home buyer that we worked with! If you are ready to start your journey simply call 602-373-1683 or email john@4salearizona.com for a buyer consultation where we can share the process with you and start finding the perfect home!

Interested in homes that qualify for dpa programs in the valley? Click here to see some options!

 

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John Doering

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