For More Information: (833) 457-6500
For More Information: (833) 457-6500
Down Payment Assistance
How Do Down Payment Assistance Programs Work?
Types of Assistance:
- Grants: Money you don’t have to repay—essentially a gift to help with your purchase.
- Forgivable Loans: Loans with no interest that are forgiven if you meet conditions like staying in the home for a set period.
- Repayable Loans: Loans that require repayment along side your current first mortgage.
- Deferred Payment Loans: Repayment isn’t required until you sell or refinance your home.
Who Offers These Programs?
- State and local housing agencies, municipalities, nonprofits, and sometimes private lenders
- Mortgage Lenders. Some of our lenders offer Down Payment Assistance.
Who Qualifies?
- Most programs target first-time homebuyers or those who have not owned a home in the last three years. Many have income limits and require a minimum credit score (often 620). Some programs have home price limits, location requirements, or expect you to complete homebuyer education.
- Sometimes, programs are open to repeat buyers or specific groups like veterans, teachers, or first responders.
What Are the Benefits of Down Payment Assistance?
- Buy Sooner: DPA programs can speed up the path to homeownership, making it possible to buy a home with less savings.
- Keep More of Your Savings: Grants or loans can cover all or part of your down payment, letting you keep more cash reserves for moving costs or emergencies.
- Avoid or Reduce PMI: A larger down payment can help you avoid private mortgage insurance (PMI) or lower its cost, saving you money over your loan’s life.
- Potentially Lower Interest Rates: A bigger down payment reduces lender risk, which may help you qualify for a better mortgage rate.
- Increase Home Equity Faster: By starting with a larger down payment, you gain more equity in your home from day one.
How Coastal Funding Can Help
At Coastal Funding, we’re committed to helping buyers in Alabama, Florida, South Carolina, and Tennessee take advantage of these powerful programs. We will:
- Evaluate your eligibility for available DPA programs in your community.
- Guide you through application steps.
- Ensure you understand program rules and long-term commitments.
Ready to see how down payment assistance can make your homeownership dream a reality? Contact Coastal Funding for a free consultation today.