Qualifying with down payment assistance How do you qualify for a down payment assistance grant program? -- Do not assume that just because you have had credit problems, you can't get a home loan. Every day hundreds of people receive help in some form of assistance with their down payment. To be considered for a low down payment loan, you generally need to have: * sufficient income to support the monthly mortgage payment * enough cash to cover the down payment * sufficient cash to cover normal closing costs and related expenses (explained below) * a decent credit background that indicates your payment history or "willingness to pay" * sufficient appraisal value, which shows the house is at least equal to the purchase price * in some instances, a cash reserve equivalent to one monthly mortgage payment Closing costs, or settlement costs, are paid when the home buyer and the seller meet to exchange the necessary papers for the house to be legally transferred. On the average, closing costs run approximately 1% to 3% of the house price. This percentage may vary, depending on where you live. Monthly Housing Payment Calculator What is down payment assistance? Non-profit organizations and Local or state agencies may offer down payment assistance programs to help with a down payment for your home. The Down Payment Assistance Program is a good one. Many local and state agencies run bond programs to generate funds to help individuals and families with a down payment. Contrary to public thinking, these bond issues are not a type of welfare. The government knows that it can be tough to buy that first home, especially on a limited income. Some agencies are income sensitive, but you may be surprised by the high level of acceptable income. The income level is especially high if you have children or dependents. Some agencies also have purchase limits, but they are adjusted to the income qualifications level. Down Payment Assistance is a fast, streamlined way to overcome such obstacles and provide new potential home buyers with the cash at closing for cash that they do not have to repay. Gift funds are available up to $25,000, and based on the final sale prices of the homes and the needs of the buyers. The program funds are free monies offered to qualified home buyers, requiring no repayments, no silent second mortgages and no recapture penalties on seller-participating homes anywhere in the United States. The money given to the buyer is a true gift. Down Payment Calculator Privacy, Licensing, Security