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.
Most 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. Most agencies also have purchase limits, but they
are adjusted to the income qualifications level.
If you are able to obtain down payment assistance, you may receive a lower
interest rate. The drawback is that it often takes quite a bit of work
with extra paperwork and mandatory education classes. Our advice, find a
realtor or mortgage professional who is familiar with both the local and state
agencies and their policies.
