With paying rent every month, how in the world would I ever save money for a down payment on my first home? I’ve read that coming up with enough money for a conventional down payment, which is 20% of the purchase price, is the largest obstacle for first time home buyers (myself included!) Fortunately, I found that there is help available in the form of down payment assistance. Many states and counties have set up agencies to provide special programs to help potential 1st time buyers overcome the hurdles in buying their first home. At the top of that list is down payment assistance.

Many states offer outright cash grants for the down payment, while others will offer a low or zero interest mortgage loan to cover the down payment. Some of those loans will automatically convert into grants and never have to be repaid if you remain in the home for a period of time. This period is typically 5 years. That’s not a bad deal! If a state agency is going to give me 15 grand as a down payment, I’ll live in the home for 5 years so that I don’t have to pay the money back. That is a great deal in my book.

After a short while searching, I found information in each state which has contact details for how to get down payment assistance. In most instances, these down payment assistance programs make it possible for first time home buyers to afford a home mortgage when they would not be able to do so the normal way. In many states, the programs offer substantial or even total down payment assistance. Without these programs, tens of thousands of people who get first time home buyer loans annually would not be able to do it.

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