Are you looking to buy a new house in the near future? After looking at your finances, do you believe you require a down payment assistance program? Here, we will discuss different ways to help you save money on down payments.
At Rocky Mountain Mortgage Co., located in El Paso, TX, we can help you figure out if you qualify for down payment assistance programs. Whether it’s your first house or your fourth house, we can help you find a program that suits you. For a free consultation, give us a call at (915) 593-3111 or contact us online today!
Down Payment Assistance Programs
A simple way to save money for a down payment on a new home is by enrolling in a down payment assistance program in El Paso. The purpose of these programs is to provide a distinct amount of money for potential qualified home buyers to help them cover the costs of a down payment. To learn about the different kinds of down payment assistance programs, read below.
- Grants- This is the most valuable type of down payment assistance. This is because the homeowners never have to repay this money. However, when looking into grants, make sure to read the documents thoroughly before signing anything. Some organizations distributing the grants may create a second lien on your home. There’s nothing technically wrong with this; just be sure to do your research.
- Forgivable Loans with 0% Interest- These loans are second mortgages that you won’t have to pay back as long as you pay them off in a set timeframe. Most of the time, lenders will forgive the loan after roughly five years, but there are also 15-20-year periods. If you decide to move before your forgiveness term is up, however, you will have to pay back most or all of the loan.
- Deferred Payment Loans with 0% Interest- These loans are also second mortgages that are usually large enough to cover a down payment. Unfortunately, these loans aren’t forgiven, although you won’t have to pay them back until you move, pay down your first loan, sell, or refinance your first mortgage.
- Low-Interest Loans- A trusted lender may offer you the option of taking out a second mortgage at the same time your first mortgage is finalized. You can use the funds from the second mortgage for your down payment. With this down payment assistance program, you will be making two payments a month. However, some lenders can offer 0% interest on these loans.
- Matched Savings Programs- With these types of El Paso down payment assistance programs, the home buyer will deposit money into a bank or other government agency. However much you’re able to put into the account, the organization will match that amount.
Down Payment Assistance Programs in El Paso
At Rocky Mountain Mortgage Co., located in El Paso, TX, we have been offering down payment assistance programs for over 35 years. We encourage you to take advantage of these programs to help you on your path to homeownership. For more information, call (915) 593-3111 today.
