Resources for Buyers Struggling With Down Payments

First-time buyer surveys consistently show the top hurdle to homeownership is saving up for the down payment. But potential home shoppers may be misunderstanding the amount of moneyΒ they really need to buy a home.

β€œPaying 20 percent down is, quite frankly, a myth,” Karen Hoskins, vice president at NeighborWorks, told HouseLogic. β€œMost buyers pay only 5 percent to 10 percent downβ€”some even pay zero.”

Several assistance programs exist to help buyersΒ with down payment concerns break into homeownership. For example, 69 percent of about 2,500 homebuying programs tracked by Down Payment Resource offer down payment assistance. The average amount of assistance from these programs tops $11,000.

HouseLogic offers several places where buyers can search for down payment assistance, including through national government programs. The Federal Housing AdministrationΒ offers loans to first-time buyers with down payments as low as 3.5 percent. Programs like the USDA Rural Development LoansΒ and VA Home LoansΒ offerΒ eligible buyers zero down payment loans.

Mortgage financing giants Fannie MaeΒ and Freddie MacΒ offer eligible buyers loans where they can put down as little as 3 percent of the purchase price. When buyers put down less than 20 percent, they pay private mortgage insurance each month to protect the lender’s interest.

Many state and local homebuying programs offer assistance programs too. There are many different forms of assistance, such as forgivable loans and grants (gifts for some or all of the down payment and closing costs) to soft mortgages (down payment assistance loans that are deferred for some period of time based on the program’s requirements).

To find a program, HouseLogic recommends NeighborWorks, which provides housing counselors to discuss mortgage options for free, and theΒ Down Payment Resource, where buyers can check their eligibility for assistance programs. Mortgage brokers should also be able to supply buyers with information about programs in their area and help determine eligibility.

Read the full scope of your buyers’ options and share the available resourcesΒ forΒ down paymentsβ€”or no down paymentsβ€”on HouseLogic.Β 

Source:Β 

β€œKnown Ways You Can Buy a House With No Down Payment,” HouseLogic.com (December 2018)Β 

I read this article at: Realtor.com

Got Questions – The Caton Team is here to help.

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you.Β Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the upmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

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Turning Teachers into Local Home Owners – It’s What We Do

Hello readers!Β  Sabrina here with one of my favorite posts to date.Β  When I first heard of Landed.com I knew I wanted to be a part of their movement.Β  Landed is a Down Payment Assistance / Equity Share Program aimed to help local teachers obtain the much needed 20% down payment for their home purchase.Β  Trust meΒ  – around here that kind of help makes a difference.

I immediately reached out to them and asked if I could help teachers in need and the rest is history.

We had the pleasure of helping Lars and several families navigate the competitive waters of Bay Area Real Estate and make a piece of California their own.Β  I cannot tell you how much joy it brings me to not only help these teachers, but to earn their trust and respect as they jumped into market feet first – dreaming of owning a home in thier community.Β  The Caton Team loved helping them and ready to help another teacher.

If you are a teacher or you know a local teacher – please send them our way and we’d be happy to connect them.Β  For everything our local teachers give – it’s so good to be able to give back!

Got Questions – The Caton Team is here to help.

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you.Β Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the upmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient.Β Responsive.
What can we do for you?

The Caton Team Testimonials

The Caton Team Blog – The Real Estate Beat

The Caton Team Website

The Caton Team Advantage

How to Buy While Selling Real Estate

Want Real Estate Info on the Go?Β  Download our FREE Real Estate App:Β  Mobile Real Estate by The Caton Team

Visit us at:Β  Our Blog * TheCatonTeam.com * Facebook *Yelp Us * My Yelp * Instagram * HomeSnap* Pintrest * LinkedIN Sabrina * LinkedIN Susan

Thanks for reading – Sabrina

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina DRE# 01413526 / Susan DRE #01238225 / Team DRE# 70000218/ Office DRE #01499008

The Caton Team does not receive compensation for any posts.Β  Information is deemed reliable but not guaranteed.Β Third party information not verified.