Down payment assistance or DPA programs provide grants and low-cost loans to help people buy a home even if they don’t have enough money for a conventional down payment. There are over 2,000 of DPA programs nationwide. Talk to a mortgage broker if you need more information on down payment assistance in Colorado Springs.
Do I qualify for down payment assistance in Colorado Springs?
DPA programs are designed primarily for first-time buyers. That said, repeat homebuyers can often be classified as first-timers again if they haven’t owned a house in the last three years. Different programs have different requirements, but in general, the buyer’s income should fall in the ‘low to moderate’ category. Also, the buyer has to use the home as a primary residence. You’re likelier to get approved (and even get more money) if you’re buying in a so-called “eligible loan area” or “target area.”
How much can I save?
National surveys show that buyers using DPA save more than $17,000 on average—about $5,900 at closing and $11,800 over the loan’s life. Borrowers don’t just save money at closing—they also enjoy having lower monthly payments.
More than that, a DPA program can also help you buy a home faster.
Let’s assume that you’re looking to buy a house worth $200,000, and you need a 3% down payment to qualify. That’s $6,000. If you can save $200 a month, it will take you 30 months to develop that amount. A 2% down payment assistance loan cut or grant can trim that amount of time to just ten months.
With two out of there, people saying that coming up with a down payment is the largest obstacle to homeownership, down payment assistance in Colorado Springs can help. It can get you over that hurdle quickly and get you on your way to owning your own home. Talk to a mortgage broker to know more.