Down Payment Assistance Mortgage Loans

Memphis, TN - The Karlton Govan Lending Team

If you’re looking for a Down Payment Assistance mortgage loan in Memphis, TN, you’ve come the right place!

How to Benefit from a Down Payment Assistance Program

In the United States, there is a lot of emphasis put on home ownership.

When people own homes, everyone benefits. In addition to the FHA-, VA-, and USDA-backed programs, there are also down payment assistance programs available in different states.

The programs vary greatly by state, but they share the same underlying principle: help people get into homes if they don’t qualify through the regular means.

You Can Borrow a Percentage of the Home’s Price

The obstacle a down payment produces is that it requires cash. There’s typically no way of getting around that.

But with some down payment assistance programs, you can borrow your down payment.

With the Great Choice Plus program in Tennessee, for example, you can borrow up to 5% of the home’s purchase price. If your down payment is 5% or less, you can cover the whole thing with this loan. You will still have to demonstrate that you can repay the loan and the mortgage, but this would ease the burden of paying for a down payment with money from your bank account.

You Can Get a Flat Amount to Help with the Down Payment

In some areas, it is possible to get a straight sum of money towards your down payment.

The best part is you may not even have to pay it back.

For example, if you live in certain parts of Tennessee, you can take advantage of the HHF-DPA (Hardest Hit Fund Down Payment Assistance) program. With this, if you live in the house for 10 years, you don’t have to pay back a single penny.

Also, even if you don’t make it the entire 10 years, after year 5, the amount owed drops by 20% each year.

To qualify, you have to take two courses, a pre-purchase course and a post-purchase course. These will help educate you on the home buying process as well as how to best manage your finances after you get into the home.

Once the down payment issue is out of the way, a borrower can focus on earning the money needed to make the monthly payments. With down payment assistance programs in every state, a significant obstacle is removed for borrowers of all sorts to get the home they want.