Down payment grants are generally based on criteria such as location, profession, socioeconomic status, ethnicity, disability or military status, explains Down Payment Resource. As of 2015, approximately 87 percent of home purchases are eligible for one of 2,290 down payment assistance programs, according to a study reported by HousingWire.Continue Reading
Down payment grants are offered by local, state, federal and private entities, and each program has different qualifications depending on the target demographic, notes Down Payment Resource. The down payment assistance programs, or DAPS, offer either a percentage, a flat sum or a loan guarantee to secure a mortgage with no down payment required. Potential home-buyers may contact their local HUD office for resources and referrals.
DAPS funded through the U.S. Department of Housing and Urban Development, or HUD, have the same general qualifications as FHA loans administered by the Federal Housing Administration, according to the FHA. A buyer and house that qualify for an FHA loan with an FHA-approved lender are typically within the same guidelines as those for a HUD-funded down payment grant offered through a municipality, county or state liaison. FHA eligibility includes stipulations about loan limits, debt ratios and credit worthiness. Some DAPS are targeted specifically to home buyers who do surpass limitations, especially in areas where cost of living is significantly higher than the national average.Learn more about Credit & Lending