Anyone who has ever bought their own home knows how difficult it is to come up with that 3%, 5%, 10% or 20% down payment. There are innumerable home loan programs, but without that down payment most of them cannot help you achieve the American dream of home ownership. Down payment assistance is an enormous help and a necessity. Consider all of the following reasons for acquiring down payment assistance.
Trying to Get Your Down Payment Together
The average American may have to work several years and sock away a few thousand every year before he or she has enough of a down payment to buy a house. Recessions and lost jobs impact everyone's ability to put that much away and actually keep it. Additionally, when the price of real estate rises and that house you had your eye on now costs more than it did when you started saving for it years ago, there is little chance of you buying it without down payment assistance.
Being Able to Buy Your Home Sooner, Not Later
If you wait indefinitely for all of the financial pieces to fall into place (i.e., have the full downpayment amount, real estate prices drop, you are still fully employed, etc.) you may be waiting forever. The "perfect storm" for you to buy a home may never come, and if you want to buy a house sooner rather than later, you will need some kind of down payment help. If you qualify for low-income home loans, there is a very good chance you qualify for programs that can help you with your down payment too. Then you can get into your own home before you are thirty, and not later (which also translates into paying off your mortgage before you retire!).
Lowering Your Mortgage Payments and Interest
When you cannot get enough of a down payment together, you can get total financing for your mortgage, but it will cost you an astronomical amount in fees, interest and PMI (private mortgage insurance). If you can get a zero interest or a very low interest lump sum to make up the difference in your down payment, then your mortgage payments are much lower, many of the related fees to 100% financing disappear, and you may not have any PMI at all. At any rate, it is worth looking into the programs that are available to you that can help you get enough of a down payment together now.