Down Payment Assistance 1st Time Home Buying Loans from WISH
When you are shopping grants for home buying in the U.S that are currently available for first-time buyers, you should familiarize yourself with the WISH Down Payment Assistance program. WISH stands for "Workforce Initiative Subsidy for Homeownership" and is one of several grants for first-time home buyers who need financial assistance in order to make a downpayment on their first house. First time home buyer grants are available in many states for qualified applicants seeking down-payment help. The WISH down-payment assistance program encourages and leverages those individuals who accumulate funds for a deposit on their first house. Shop and compare lenders that endorse down payment assistance on first time home buyer mortgages in your state here for free with no obligation.
As with other home loans with down payment assistance benefits, the WISH program is comprised of participating banks and lenders that assist families and individuals as well as lower income households that are ready to quit renting and purchase their own home.
How the WISH Down-Payment Assistance Loan Program Works
Applicants who qualify for the WISH Down Payment Assistance program can receive up to $15,000 with a 3-to-1 match on down-payment funds. The funds can be applied to:
- Reduced or Eliminated Closing costs
- Down Payment Costs
- Federal, local, and state homeownership assistance programs
This type of Federal aid for down-payment assistance is classified as a "forgivable" loan which means that the homebuyer must repay a pro-rated portion of the loan if they refinance or sell the home prior to the end of the loan's retention period (5 years). However, the house loan will be forgiven once the retention period of 5 years has expired. If you want to see another option to the WISH program, when shopping ask the mortgage companies about other potential down-payment assistance programs for first time home buyers.
What Are Down Payment Grants?
Down payment assistance in the form of a grant is simply a kind of financial assistance program that awards you with money based on some simple qualifications. They're offered by the federal government as well as most state governments, and once that you are approved for the grant you can receive the funds and use them for your down payment without having to repay them until you sell the home. DPA helps many consumers convert their regular mortgage into a zero down home loan because the grant covers the deposit required by the lender.
Instead of a loan, these grants offer a way to come up with as much as 10% of your down payment without having to struggle at all. In fact, there are roughly 2,290 down payment grant programs throughout the country just waiting for you to use.
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Down Payment Requirements and Features
In order to be eligible for the WISH Down Payment Assistance Program, the buyer must provide their own funds in the amount of 1% of the purchase price of the home. For instance, if the agreed-upon selling price of the home is $150,000, the individual must come up with $1,500 out of their own pocket.
The buyer is allowed to obtain up to $5,000 and apply those funds to the matching $15,000 that they receive from the WISH program are eligible for. A key point to consider is that this down payment assistance loan program is available to qualifying individuals only and must be used in conjunction with city, county, or employer sponsored program (e.g. government, school district, etc.)
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