June is National Homeownership Month, when we celebrate the benefits of homeownership including stability, safety, community and potential wealth-building. Homeownership is a major milestone in one’s financial future—but making a down payment on a home might be a stretch for many potential homebuyers.
Resources exist for buyers whose finances are tight. Some loans allow for low down payments, but if you need even more help, you can explore down payment assistance (DPA) programs. A DPA program might give you just the push you need to achieve homeownership, if you qualify. Explore a few options below:
RezSource
Here at Newrez, we strive to be there for borrowers in all circumstances—including those who need a little help to reach their goals. That’s why we offer this down payment assistance program that is designed to help qualified lower-income households get some relief on a down payment.
If you fall at or below 80% of the area median income, RezSource1 may enable you to:
- Qualify with as low as a 580 credit score
- Put as little as 3% down on a home (1% minimum borrower contribution)
- Receive DPA/closing cost assistance of the lesser of $5,000 or 2% of the property’s appraised value.
Curious if you qualify? Reach out to a Newrez loan expert to find out more.
State and Local Down Payment Assistance Programs
Many states and municipalities offer programs designed to help residents reach homeownership. State Housing Finance Agencies offer various programs (find your HFA here), and so do many cities and counties.
These programs often take the form of second mortgages, which offer down payment and/or closing cost assistance that can be repaid at a low or 0% interest rate. A handful of municipalities offer grants which do not need to be repaid at all.
Typically these programs require that the first mortgage be one of a few approved kinds—for instance, Freddie Mac®, Fannie Mae®, VA or FHA 203(b).
Newrez carries many of these state and local homebuyer programs—reach out to a Newrez mortgage expert to find out what assistance is available in your area and if you qualify.
National Grant Programs
Newrez offers two national grant programs for borrowers in specific circumstances.
- National Homebuyers Fund Tricon Gift Program: If you have lived in a Tricon Residential® rental home for five or more years and are a low- to moderate-income homebuyer, you may qualify for a grant of up to $5,000 towards a down payment or closing costs on any home. No limits on income or sales price. Only available with certain mortgage types; reach out to Newrez for more information.
- S.H.I.E.L.D. HomeStart DPA Grant: Anyone may apply for this grant, though preference is given to first responders. The program offers up to 3.5% down payment assistance. No limits on income or sales price. Only available with certain mortgage types; reach out to Newrez for more information.
Homeownership May Be Closer Than You Think
At Newrez, we want to do all that we can to empower you to reach your homeownership goals. If you’d like to know more about any of the above programs, reach out to a Newrez mortgage expert today and we’ll be glad to answer your questions.
Freddie Mac® is a registered trademark of the Federal Home Loan Mortgage Corporation. Fannie Mae® is a registered trademark of the Federal National Mortgage Association. Tricon Residential® is a registered trademark of Tricon Residential Inc. None of the above-mentioned companies are affiliated with Newrez LLC.
Down payment assistance products may have a higher interest rate or higher finance charges than other loan products which may be available.
1 Offer only available for 30-year fixed rate loans. Income limits and property type restrictions apply. Minimum loan amount $25,000 in all states but Michigan ($10,000). Other terms and restrictions apply. Contact Newrez for additional details.
This is not a commitment to lend. All loan programs are subject to credit, underwriting, and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.
