We have blogged about this recently, but feel it's of such high value, we wanted to share this information again. The real estate industry really picks up this time of year so maybe you are one of the many people who are considering buying a home. If you are like many Americans, coming up with a downpayment is a challenge. Here's some information that you may find helpful in your endeavor.
One of the biggest obstacles home buyer’s face is coming up with a down payment. Saving money is tough. According to CreditDonkey, nearly half of Americans don’t have enough cash in savings to cover an unexpected expense of $500 or less. Just 17% carry the suggested three month emergency fund in savings, and we won’t even talk about retirement savings. It’s becoming increasingly more difficult to make ends meet and obtain the American Dream.
What Are My Options?
There are a few mortgage options which require no down payment or a smaller than usual down payment. For example, a VA loan. The Department of Veteran Affairs (VA) offers no downpayment requirement for qualified veterans, active-duty service members, and some members of the National Guard and Reserves. Find out more about a VA loan HERE.
The Department of Agriculture's (USDA) Rural Development mortgage guarantee program offers a zero down payment mortgage for properties within eligible areas. There are restrictions regarding household income, and while it is intended for first-time buyers, there are exceptions. Find out more about the USDA Rural Development Mortgage Guarantee Program HERE.
The program we really want to shine a spotlight on is the Montana HomeNow Down Payment Gift Program. The Montana & Idaho CDC's mission is "to provide financing and consulting services that transform the lives of individuals and strengthen community prosperity". Their HomeNow Down Payment Gift Program was developed to enable borrowers to access financing for the purchase of a home since, as previously stated, lack of funds for down payment is the primary reason many Americans get loan approval.
Just as with any other program, there are some eligibility qualifications. Some of which include income limits, credit score, and residing in the state of Montana. If you would like to find out whether or not the Montana HomeNow Down Payment Gift Program could work for you, give us a call. We would love to help! (406) 556-7188