- Crowdsourcing
You may have heard of people using sites like Kickstarter to fund creative projects like short films and concert tours. Hatch My House says it’s helped Americans raise more than $2 million for down payments.
- Asking the Seller’s Help (Really!)
When sellers want to a get a deal done quickly, they might be willing to assist buyers with the closing costs. Fewer closing costs = more money that can be applied toward the deposit. For FHA mortgages, the cap on closing costs is 6% of the sale price.
- Government Options
The Department of Housing and Urban Development (HUD) offers
a number of programs, including assistance with down payment and closing costs. These are typically available for people who meet particular income or location requirements, or are veterans or in certain professions. Law enforcement officers, firefighters, teachers and EMTs, may be eligible for “Good Neighbor Programs” that offer a 50% discount on a home’s HUD-appraised value in “revitalization areas.”
- Employers
Employer Assisted Housing (EAH) programs help connect low to moderate income workers with down payment assistance through their employer.
- Special Lender Programs
Finally, many lenders offer programs to help people buy a home with a small down payment. FHA mortgages, for example, can require as little as 3.5%. There’s actually a lot of help available for many first-time buyers who want to achieve their homeownership dreams.
