How many times did you resist yourself investing in something because of some unverified myths? Purchasing a house is one of the biggest investments in a person’s life. At this crucial hour, you cannot take the risk. Nowadays, the down payment assistance improves a homebuyer’s purchasing power. Therefore, a person can qualify for the program quickly and easily. So, can you let the myths make you think otherwise?
Even though the borrowers have credit or income qualifications, the down payment becomes a huge obstacle. On top of it, the myths around down payment assistance to purchase homes in Texas might be obstructing your path. To know the truth, go through the rest of the article.
Myth #1: First-time homebuyers can get this facility
Before everything, you should know that the term ‘first-time homebuyer’ refers to a person who has not purchased a house in three years. If you are a homeowner who is renting at present, you can still opt for the down payment assistance program. So, you should remember that the program is solely dedicated to the homebuyers and not the investors. Generally, the lenders request the borrowers that the new home must be used for a primary residence. When a person buys a home in a particular area, he/she can utilize special benefits. Now, the advantages can be low-income requirements or higher assistance amounts. Also, the veterans can qualify for the first-time homebuyer waiver as well.
Myth #2: The program makes the process difficult
Buying a home is probably the largest purchase to make in your entire life. So, you would leave no stones unturned, right? When you are applying for a mortgage through a down payment assistance program, there is additional paperwork to be done. Of course, the paperwork is not widely different from the documentation you are already undertaking for the loan process. The participating lenders are qualified to write the mortgages linked to the program. Therefore, they know how to deal with special financing and loan at the same time. Additionally, the homebuyers make sure that the borrowers are financially responsible. The down payment assistance program has a credit score threshold. So, the programs ask the borrowers to put down only a little amount of money. However, you can do homework to go down the path smoothly.
Myth #3: Down payment assistance is only for FHA
The truth is FHA loan is the most used mortgage with down payment assistance. However, it does not mean that you can never use the program with any other loan product. FHA loan has flexible down payment requirements than other mortgages. Needless to say, it is more befitting for large-scale customers. The down payment assistance program is Texas is applicable for USDA, VA, and conventional loans. FHA indeed is the most popular among the first-time homebuyers; however, this is not the last resort. For instance, if a USDA loan is the perfect option, you can easily get higher assistance amount.
Now, you know the truth behind the down payment assistance program. Of course, seek help from a lender if you have other queries.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.