Advantages And Disadvantages Of Down Payment Assistance

Advantages And Disadvantages Of Down Payment Assistance

Las Vegas is one of the most exciting cities in the world! The population is just over 600,000 and even more people are looking to relocate to our city in the near future. Real estate in Las Vegas is extremely hot right now. It's important to have a Realtor who is experienced that will guide you through the home buying process. 

Here is an important tip, if you are limited on funds, don't let that stop you from buying a home in Las Vegas. A down payment assistance program may be a good option for you. Image title


What is Down Payment Assistance?

Many buyers are not aware that they are eligible for one of several down payment assistance programs. Our government provides help for some of those who are struggling to put the necessary money down on a home purchase. 

These payments are normally interest free while you are living in the home. However, there may be some restrictions if you decide to sell before a certain deadline. In this case some programs require the money to be paid back in full.


Advantages of these Programs

There are thousands of programs available to assist a home buyer with making a down payment. Some of the benefits include:

•Helps you buy a home sooner

•Makes the home more affordable

•Helps to keep the real estate market and community thriving

•These programs offer buyer education classes


Disadvantages of These Programs

There are some disadvantages to the programs that offer help with a down payment. Some of these include:

•With most programs, you cannot rent the property

•You may be required to sell to another buyer who comes from low to moderate income

•Your interest rate may be higher than it would be without the program


How to Qualify for a Program

There are certain qualifications that need to be met before you are approved for a program. It depends on the location of the property, type of home, household income, and home buyer certifications. 

A good Realtor will refer you to a loan officer who can ask you some simple questions and see if you qualify. You must prove that you are financially responsible, and there is a minimum credit score requirement.


Will Financing be Difficult?

These assistance programs require quite of bit of paperwork, but it is not hard to complete. The first step is to meet with a real estate professional who will educate you on the process. Next, get pre approved for a home loan by your bank or a reputable loan officer. This will allow you to know exactly how much you qualify for and provide you and your Realtor with a budget of what you can spend. 

Lenders are trained to let you know what programs you may be eligible for, and will know how to write the loan accordingly. Make sure you work with a lender and Realtor who are familiar with these programs so you can save money! Image title


Types of Assistance Programs

There are many types of programs that offer assistance. Some examples are Home is Possible & Neighborhood Lift. 

Certain options will cover your down payment or some even help with covering closing costs when buying a home. You could be eligible to receive a grant of nearly $5,000.

The Las Vegas real estate market is booming and there are excellent deals on properties for you to buy. 

However you can never save too much money, so find out if one of these programs might be right for you. If you are looking to purchase a home get a better agent! Find a Realtor who will guide you through your pre approval process so you can purchase the home of your dreams.


Amber Anderson Headshot
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Phone: 702-343-1424
Dated: May 5th 2017
Views: 870
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