3 Misconceptions on Down Payment Assistance to Purchase Homes in Texas

When you buy a house on credit, you need to make an initial payment, known as a down payment to the lender. Irrespective of the kind of home loan program you opt for, you need to come with a down payment amount, and the bigger the amount, the better it would be for you.

Are you wondering how to manage the down payment for your home loan? Well, opt for down payment assistance to purchase homes in Texas. Are the myths creating doubts in mind your mind? Here are the myths and the facts -

Myth 1: Down payment assistance makes home financing more difficult

Buying a home is the largest purchase that you will ever make in your life. So, you would like to get it right and make a wise financial decision. And when you apply for and use a down payment program, you need to focus on the additional paperwork. But the paperwork is similar to what you are already doing when applying for a home loan.

Mortgage lenders who offer down payment assistance programs are qualified to write these loans associated with the programs and have the required knowledge on how to add this special financing into the home loan without complicating the real estate transaction. This is why; it is vital to seek information about available programs before getting pre-qualified.

Myth2: The assistance is only compatible with FHA loans

While FHA loans are generally used with down payment assistance, it does not mean that other loan products are off the table. Nowadays, you can find flexible down payment requirements with FHA and conventional financing. Various down payment assistance programs are compatible with VA, FHA, USDA, and conventional loans. But how do you know what will be the best fit for you? It comes down to purchase price, as well as assistance amount.

But if you have $10,000 in assistance on the same $150,000 house, which brings you to more than 6% down and may help reduce your total monthly payment, loan fees, and mortgage insurance. Keep in mind that there are various factors to consider. So, ask your home loan lender for diverse loan options, compare them properly, and then make a wise decision.

Myth3: These programs are only for low-cost homes

No, it is not true. These programs are not just for narrowly defined homebuyers and “targeted” neighborhoods of very inexpensive homes. Generally, homes in any neighborhood may be eligible with sales price limits ranging from $200,000 to over $700,000 in high-cost markets.

Moreover, some may offer tiered assistance dollars at several income levels, so higher income isn’t always an automatic disqualifier. Income limits are based on the household size, so limits for a family of five are significantly higher than for a single person.

So, you could understand there is no reason to believe in these misconceptions. Now, opt for a down payment assistance program and go a step closer to your dream of homeownership.