Is it true? Can everyone achieve the American dream? Or is it just for those who spend years saving up 20% for a down payment?
Yes, anyone can achieve the American dream. With a down payment assistance grant, homeownership is much more achievable. Down payments are often the biggest hurdle to buying a home.
Through a down payment assistance program, you can save years by skipping the process of saving up tens of thousands of dollars.
Keep reading to see who this program is for and how it can help you get your dream home sooner rather than later.
Did you know that 72% of renters in America dream of owning a home one day? That’s because homeownership comes with an array of benefits.
First and foremost, you are building equity each month as you make your mortgage payment. Rather than paying rent each month —with nothing to show for it year after year — you are paying down your mortgage and increasing your net-worth.
On top of that, houses tend to appreciate in value over time — unlike cars, which only depreciate.
Owning a home also helps boost your credit score. A higher credit score means more options in the future for acquiring loans for things such as cars, starting a business, and more. Then, there are tax benefits, which may help you save money during tax season.
The barrier for most, however, is the down payment. Traditionally, to buy a home, you would need to save up 20% of the home cost as a down payment in order to get a mortgage.
As of June 2020, the median home price in the U.S. is $329,000. If you were paying 20% down, you would need to save up $65,800 — plus additional money for closing costs and moving expenses.
Now, more than ever, down payment assistance is needed. Thankfully, there are many programs available for would-be homeowners to either pay lower down payments or receive assistance for down payments.
A down payment assistance grant is a program that gives you the money you need for your down payment. You can receive different types of grants from different organizations — such as non-profits or financial institutions — but not all programs are created equal.
More often than not, these programs end up being a loan you’ll need to pay back. They are a second mortgage, usually with low or no interest.
With these types of programs, you are borrowing money for the home (a mortgage) and then borrowing more money for the down payment.
Many times, however, you only need to pay this money back once the home is sold, so your monthly payments aren’t necessarily higher. Some programs even forgive the loan after you have lived in the home for a specified amount of time.
But is there a better down payment assistance program, perhaps by having the money for a down payment gifted to you? Yes, there are such programs that do not require you to pay the money back.
This type of down payment grant makes homeownership much more viable and moves you in years earlier compared to traditional down payment requirements.
A down payment assistance grant is different from a lower down payment program.
Grants give you the money needed for a down payment. Lower down payment programs simply lower the amount needed to get a mortgage but do not give this money to you.
Programs such as FHA, for example, allow you to borrow as much as 96.5% of the home cost, only paying 3.5% down. That is much less than the traditional 20% normally required by lenders.
Regarding the earlier example of a $329,000 home — the nation’s median — 3.5% would only be $11,515 compared to 20%, or $65,800.
While these programs typically come with additional rules and requirements — such as paying private mortgage insurance — they allow many more to enjoy the privilege of homeownership.
Still, $11,515 is no pocket change. What if you still can’t afford a down payment?
The best part is, you can actually combine these two options.
The American Dream Grant, Down Payment Assistance Program, is our way of making your homeownership dreams come true. Not only can you qualify for a small down payment program, but you can also receive a grant for the down payment.
Both new and repeat homebuyers can qualify for the grant. Depending on your situation, the grant is available to those using FHA, VA, conventional, or USDA mortgage programs.
The grant can be up to 3.5% of the total mortgage amount, to be applied directly to the down payment or closing costs. And our grant program is a gift, not a loan. There are no repayments required for the American Dream Grant.
Want to know if the program is right for you? Get your free consultation today.
Our program is truly unique. It’s not often that financial institutions give true gifts. We simply have a different approach to serving our customers.
To be able to offer this to you, we actually limit our profit margins as an organization and then share that margin with you — the customer — through this grant.
We do this ethically and transparently because we believe that you, our customers, are actually partners. We’re in this together, and we want you to feel that from the beginning.
Since we are independent and not affiliated with any specific real estate agency, we do not need to maximize profits for shareholders. Our goal is maximizing benefits for our customers instead.
This is our approach to social capitalism: making society better through business. We can’t wait to serve you.
There has never been a better time to buy a house than today. The sooner you own a home, the sooner you start building equity and, ultimately, your wealth and net worth.
There is no need to continue paying rent month after month, with nothing to show for it at the end. There are so many options available to acquire a home, but it can be overwhelming to get started.
If you’d like to see if our down payment assistance grant is right for you, you can contact us today for personalized service and recommendations best suited to your situation.