Hi there, everyone….Hope you’ve had a great summer and are getting ready for the back to school routine.
I know that my title is grabbing, but I’m determined to spread the word about this subject.
Today’s topic is about first-time buyers and down payment assistance programs. Before I start, let me tell you what recently occurred. About two weeks ago, Domicile One Realty conducted a survey of buyer’s agents that had closed transactions in Grandview, MO within the past year. Although pricing was the #1 motivation for the home selection and 50% of the buyers were first time buyers, only 6% of the buyers used any type of available down payment assistance program. Now you would think that, with so many first time buyers focusing on pricing, there would be more people taking advantage of down payment assistance programs, right?
Did you know that the Missouri Housing Development Commission offers a program for eligible buyers that provides 3.5% of your down payment? If you are getting an FHA loan, that is your entire down payment. There is another program that allows you to get a Federal tax credit on 25% of the annual mortgage interest year over year as long as you own the home. They have a generous household income limit to qualify as well as defining “first time buyers” as those that have not had an ownership interest in the past three years. In addition, military veterans might be eligible for the program even if they are not first time homebuyers.
So lets take that Grandview, MO example I just wrote about. With so many first time homebuyers, you’ve got to think that more folks were eligible than those that actually benefited from the program. With numbers like I saw, it would be conservative to say that tens of thousands of down payment assistance money was left on the table in the small sample we polled.
Domicile One Realty goes over these items with our participants in our monthly class. We’d love for you to join us. If you can’t attend a class, please give us a call so we can share what we know.
OK, so what is the question you can ask your buyer’s agent and lender right up front that could save your so much money? It’s simple…. “Are you aware of any down payment assistance programs that I might be eligible for?” If they do not know what you’re talking about, please give us a ring.
Now it might be the case that you aren’t eligible for the program, but isn’t it at least worth a try?
Take care and please call with any questions.
Terry Jackson — Broker Owner — Domicile One Realty
913-488-5623 — www.DomicileOne.com