A Comprehensive Guide to Down Payment Assistance Programs

A piece of paper that reads “down payment assistance” with a pen next to $100 bills.

Are you looking to buy a house but are having trouble budgeting a down payment? If so, we recommend looking into a down payment assistance program. 

Rocky Mountain Mortgage Co., located in El Paso, TX, offers down payment assistance programs for home buyers who need a little more help. We make sure our programs are as easy as possible and stress-free. If you’d like to hear more about our down payment assistance programs, give us a call at (915) 593-3111 or contact us online today!

Down Payment Assistance Explained

Down payment assistance programs are home-buying programs that offer small loans, grants, or tax incentives to eligible buyers. Some of these programs offer cash grants for more specific uses like renovations or repairs to make the property value go up. These programs vary based on the state you live in, your annual income, and how soon you apply. Examples of what you can receive during a down payment assistance program are listed below. 

  • Local and state tax credits for home buyers.
  • Mortgage loans at lower interest rates. 
  • $25,000 grant for a home down payment. 
  • Forgivable loans for a home down payment.
  • Cash for mortgage closing costs and discount points. 

Down payment assistance programs in El Paso work because they help eligible home buyers purchase a home, especially if they are first-time buyers. These programs are administered at local, state, and federal levels. However, they can be handed out by charities and other private organizations. Some down payment assistance programs target specific professions, such as nurses, teachers, and EMTs, while others only assist buyers in a certain neighborhood or street. 

Qualifications and Benefits

Like with any loan, there are specific qualifications that must be met to make you eligible for a down payment assistance program. The biggest qualifier is your financial situation; to qualify for the program, you must qualify for a mortgage. You have to have a certain income and credit score to move forward in the process. However, as mentioned above, certain professions, such as law enforcement or veterans, can have special circumstances. 

Down payment assistance programs can be offered to both first-time buyers and non-first-time buyers. However, if you are a first-time buyer, you can get additional assistance. First-time buyers can also apply for special income tax programs, which can save you hundreds of thousands of dollars every year. Qualifications are flexible and attainable for most first-time buyers. 

The down payment assistance programs offer benefits like valuable homeownership education, helping you relocate closer to your job, offering mortgage insurance, and a faster home-buying process. 

Down Payment Assistance Programs in El Paso

The professionals at Rocky Mountain Mortgage Co., located in El Paso, want to help you find and move into your new home. With our years of experience, we know what’s in your best interest and can help you find a program that suits you. For a free consultation, call (915) 593-3111 today.

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