Down Payment Programs for El Paso Homebuyers

How Does Down Payment Assistance Work?

A down payment assistance program is a type of loan or grant designed to help a home buyer purchase a new home if they can’t afford the down payment or closing costs. There are thousands of DPA programs available across the country; some federal, some through local government, and some private.

Types of Down Payment Assistance Programs

There are a few different types of down payment assistance programs available. Our loan officers can help you determine which types you qualify for and which one is best for your needs and goals:

• Grants – A grant is a one-time cash sum, like a no-interest second mortgage, that does not need to be repaid.
• Forgivable Loans – A forgivable loan is a second mortgage you don’t need to repay if you meet certain requirements.
• Low-Interest Loans – A low-interest loan functions as a second mortgage with an affordable interest rate.
• Deferred-Payment Loans – A deferred-payment loan doesn’t charge interest, and you won’t need to start repaying it until the loan term ends, you move, or you refinance your home.
• Individual Development Accounts (IDAs) – An IDA is a special savings account you contribute to and get matching contributions from private or public money.
• Private Lender DPA – Some mortgage lenders, like Rocky Mountain Mortgage Company, offer their own DPA programs to qualified buyers.

Benefits of Home Down Payment Assistance

For many potential homeowners, paying a down payment or closing costs on a new home can be a challenge and may deter or prevent first-time homebuyers from affording a home. Thankfully, our down payment assistance program can provide the help needed to achieve your dream of homeownership.

How to Get Down Payment Assistance

You can explore DPA programs through a few different local, federal, and private agencies in Texas. You can find down payment assistance from:

• Texas Department of Housing and Community Affairs
• El Paso HFC for First-Time Homebuyers
• The El Paso County Down Payment Assistance (DPA) program
• S. Department of Housing and Urban Development’s (HUD)
• Your loan officer or mortgage lender
• Down Payment Resource

Eligibility for Down Payment Assistance

Most DPA programs are designed to provide assistance to first-time homebuyers and buyers with low to moderate incomes. The programs are meant to help these buyers obtain a primary residence, not an investment or rental property. In general, your income may need to fall below a certain threshold called the area median income (AMI). You may also be limited by eligibility established by city or county agencies or lenders who are looking for buyers with specific backgrounds.

You may also need to have a specific credit score or credit score range in order to qualify. In addition to basic financial eligibility requirements, there are certain professions that may be favored by specific programs, such as teachers, police officers, firefighters, emergency medical technicians, and veterans.

There are other homebuyer assistance programs that do not favor specific professions, such as the Home Sweet Texas Home Loan Program. This program only requires that you meet a certain income requirement.

Assistance programs can be provided to first-time home buyers and non-first-time home buyers. If you are a first-time home buyer, you can also qualify for a special income tax credit program, saving you thousands of dollars each year. The qualifications are rather flexible and attainable for most home buyers.

Why Choose Rocky Mountain Mortgage Company

Rocky Mountain Mortgage Company is a locally owned and operated full-service mortgage lending company with over 30 years of experience in the industry. We have earned a reputation for excellence in our community due to our commitment to honesty, integrity, and strong customer relationships. We go above and beyond to help our customers obtain the financing they need to achieve their dreams of homeownership. Our DPA costs can be set at a reasonable price when you choose us to help you qualify for an assistance program.

Call to See if You Qualify for Down Payment Assistance

Our goal is to provide advice to help you find and move into a new home. We know what is in your best interest, so don’t hesitate to contact our team to assist with your financial needs and discuss home-buying options. Call us now or contact us online to schedule a free, no-obligation consultation to discuss your options for down payment assistance in El Paso, TX, and New Mexico.