Are you eager to buy a home but concerned about the down payment? Don’t let it hold you back! According to the National Association of Realtors (NAR), 38% of first-time buyers struggle with saving for a down payment. But here’s the encouraging truth: you may not need as much as you think. NAR data reveals that since 2005, the median down payment hasn’t exceeded 20%.

Let’s dive into practical solutions! FHA loans offer down payments as low as 3.5%, while VA and USDA loans don’t require any down payment for eligible applicants. But there’s more to explore, especially when it comes to down payment grant programs.

Grant Programs to Ease Your Homebuying Journey:

Bank of America:

• America’s Home Grant® Program: Gain up to $7,500 in closing cost assistance. This program offers a lender credit to make homeownership more accessible, subject to income and location-based eligibility. Funds are designated exclusively for nonrecurring closing costs.
• Bank of America Down Payment Grant Program: Eligible buyers may receive up to 3% of the primary residence’s purchase price (maximum $10,000). Funds are solely for the down payment, with specific income-based qualifications and homebuyer education requirements.

Chase Bank Homebuyer Grant:

Lower your mortgage costs or reduce closing expenses with a $5,000 grant. Qualifying buyers can utilize this grant to:

• Buy down the interest rate on their new mortgage.
• Reduce closing costs associated with the new mortgage.
• Apply the funds towards the down payment.
• Eligibility: The Chase Homebuyer Grant is available for primary residences situated in select regions nationwide.

These grant programs offer a helping hand toward homeownership, alleviating down payment concerns and closing costs.

Don’t forget about the LIPA program, another significant resource for potential homebuyers. Specifically designed for low-income homebuyers in Los Angeles, this program provides financial assistance for purchasing homes in select areas.