As 2015 draws to a close, and we enter 2016, we are still seeing very low interest rates for home loans across the country.
If you are looking to make the home buying plunge in 2016 getting a low rate shouldn’t be a problem and if you need a little down payment assistance, here are some good ideas to help you along.
Down payment assistance programs help home buyers obtain the needed fees they require to close on their home purchase.
These types of programs can be administered by your local or state housing authorities, a local nonprofit and even some lenders have programs to help qualified buyers close.
These programs really help lower income people who can afford their projected house payment, which in many areas is lower than the rental prices, but are unable to save up all of the funds needed for their down payment & closing costs.
With an FHA (Federal Housing Administration) loan, you will receive a grant that covers your down payment, normally 3.5% of purchase price, along with the typical closing costs fees associated with buying a home.
Grants do not have to be paid back.
By the way you can have a credit score of only 640 to qualify for an FHA loan and you can have non-occupant cosigners help you get approved for your loan… what a great deal!
The only catch is your interest rate will be a little higher with the lower credit score, but if you make six on time payments you can usually refinance for a lower rate.
Your best bet is to start working with a qualified lender who can guide you through this process, advise you on items to repair in your credit report if needed, and get you approved so you have the best chance of winning the deal, should you be in an area where homes sell quickly.
Here is a list of some down payment assistance programs in Arizona.
We are always here to advise and help you get started with your home buying adventure.
Why settle for just one real estate agent when you can work with a whole team?
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