Down Payment Assistance
By Jim Palmer Jr.

Down payment programs are alive and well across the country, and demand for them is at a record high. So, why do so many loan officers and real estate agents still balk at taking advantage of these opportunities for their buyers?  Locally brokers are taking advantage of these programs and have even created resources to make it easier for buyers.  Spokane Realtors® recently created a DPR or Down Payment Resource tab for their brokers on their MLS data base.  This puts those resources at their finger tips.

Have you dreamed of owning a home but find that collecting a sufficient down payment is your biggest hurdle?  Maybe it doesn’t have to be such a hurdle!  There are currently 2,000+ homebuyer assistance programs available in the U.S., including many in the Spokane area. 

These down payment assistance programs come in various forms, such as grants, loans, tax credits etc.  These programs can provide eligible buyers with down payment assistance, cover some closing costs and may help you get into that new home much sooner than you could have otherwise. Assistance programs are managed and funded from a variety of sources and participating lenders are able to originate and process such programs.

Both you and the home you are purchasing must be eligible. Such programs are not for investment properties, but for first-time homebuyers.  That means even if you have owned a home in the past you could still be eligible if you have not owned a home in the past three years.  There are some programs that don’t have the first-time-buyer requirement, but generally in order to qualify you must make a minimum investment, qualify for a first mortgage and complete the homebuyer education.  Other eligibility factors are the home’s sales price and buyer’s income.

Your occupation may make a difference as well, since there are often added benefits or even separate programs for teachers, first responders, health care workers, veterans, disabled persons and Native Americans.

DPA programs come in basically two forms; 1) grants which do not have to be paid back and do not lien the property. 2) Second mortgage loans with varied payback options or even loan forgiveness provisions. Some of these loans allow deferred or postponed repayment until the borrower sells or refinances. Some forgive part or the entire DPA amount.

There are also affordable first mortgage options such as VA or USDA loans which require zero down payments, and allow sellers to contribute towards some of buyers other closing costs.